VISIONIAS

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CURRENT AFFAIRS
JANUARY 2016

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TABLE OF CONTENTS
1. POLITY AND GOVERNANCE __________________________________________________________ 6
1.1. Lodha Committee Recommendations ______________________________________________________ 6
1.2. Enemy Property Ordinance, 2016 Promulgated ______________________________________________ 7
1.3. Transport and Road Safety Bill, 2015 ______________________________________________________ 8
1.4. Black Spots in Road Safety _______________________________________________________________ 9
1.5. Portals for Bringing Transparency in Road Projects __________________________________________ 10
1.6. Centre to set up Road Safety Regulator ___________________________________________________ 10
1.7. Electoral Trust _______________________________________________________________________ 11
1.8. Election Commission Seeks Full Independence _____________________________________________ 11
1.9. Challenges with SPV in Smart Cities ______________________________________________________ 12
1.10. Nayi Manzil Scheme __________________________________________________________________ 13
1.11. Open Book Examination ______________________________________________________________ 14
1.12. Panel to suggest measures for the revamp of CBFC _________________________________________ 14
1.13. NHAI TO USE SATELLITE TECHNOLOGY ___________________________________________________ 15
1.14. India ranked 76th in CPI 2015 __________________________________________________________ 15
1.15. National Award on e-Governance _______________________________________________________ 16
1.16. River information system _____________________________________________________________ 16
1.17. Web Based Rail Track Management _____________________________________________________ 17
1.18. Bureau of Mines ties up with NRSC ______________________________________________________ 17
1.19. Government to relax mining lease transfer rules (MMRDA bill) _______________________________ 18
1.20. Kilkari Project _______________________________________________________________________ 18
1.21. Anubhav ___________________________________________________________________________ 19
1.22. Kerala Liquor Prohibition Policy- Supreme Court Verdict ____________________________________ 19
1.23. National Development Council (NDC) to be scrapped _______________________________________ 20
1.24. Merging of MOIA with MEA ___________________________________________________________ 20

2. INTERNATIONAL RELATIONS ________________________________________________________ 21

2.1. World Development Report 2016 ________________________________________________________ 21
2.2. TFA in services- Indias perspective _______________________________________________________ 21
2.2. Beijings Race for the Eurasian Heartland __________________________________________________ 23
2.3. West Asian Crisis Deepens Between Iran and Saudi Arabia ____________________________________ 23
2.4. China-Iran Relations ___________________________________________________________________ 24
2.5. 4th India-Africa Hydrocarbons Conference (IAHC) ___________________________________________ 25
2.6. First India Arab Ministerial Conference ___________________________________________________ 26
2.7. Mauritius to Exclusively Offer Bio Farming Technology to India ________________________________ 26
2.8. Why Crude Oil Prices are Falling? ________________________________________________________ 27
2.9. What Does a Brexit Means? ____________________________________________________________ 27
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2.10. India Approves Mou with Bangladesh to Set Up More Border Haats ___________________________ 27
2.11. Sri Lanka Begins Process to Draft New Constitution ________________________________________ 28
2.12. Japan-Russia Territorial Dispute ________________________________________________________ 28
2.13. India to Build a Satellite Station in Vietnam _______________________________________________ 29
2.14. Amendment in Nepal Constitution ______________________________________________________ 29
2.15. Naseem Al Bahr _____________________________________________________________________ 30
2.16. Saudi Arabia oil premium charge _______________________________________________________ 30

3. ECONOMY _______________________________________________________________________ 32
3.1. Fourth Industrial Revolution ____________________________________________________________ 32
3.2. Startup India Programme ______________________________________________________________ 33
3.3. Stand Up India SchEme ________________________________________________________________ 34
3.4. Pradhan Mantri Fasal Beema Yojna ______________________________________________________ 35
3.5. SEBI Panel Suggests Reforms to Grow Alternative Funds Industry ______________________________ 37
3.6. Recent Measures to Boost Sezs __________________________________________________________ 38
3.7. Easwar Panel ________________________________________________________________________ 38
3.8. IMF Reforms _________________________________________________________________________ 39
3.9. IMF Cuts Global Growth Forecast as China Slows ____________________________________________ 40
3.10. Index of Industrial Production __________________________________________________________ 40
3.11. Scope of DBT to Be Enlarged by Both Centre and States _____________________________________ 41
3.12. Global Talent Competitiveness INDEX ___________________________________________________ 41
3.13. CSR in India _________________________________________________________________________ 42
3.14. Devaluation of Chinese Yuan ___________________________________________________________ 43
3.15. Seed Funding Tax to Be Removed _______________________________________________________ 44
3.16. Rail Regulator to Set Fares, Ensure Fair Competition ________________________________________ 45
3.17. SpaceX: Space Start Ups_______________________________________________________________ 46
3.18. OxfAm Report on Inequality ___________________________________________________________ 46
3.19. Medium Term Debt Management Strategy _______________________________________________ 46
3.20. Conversion of Mudra into Bank_________________________________________________________ 47
3.21. Horticulture Statistics ________________________________________________________________ 47

4. SOCIAL ISSUES____________________________________________________________________ 48
4.1. National Family Health Survey __________________________________________________________ 48
4.2. Jallikattu Ban ________________________________________________________________________ 49
4.3. Need for Special Law for Child Rape (Failure of POSCO) ______________________________________ 50
4.4. Reservations for Women in Bihar Government Jobs _________________________________________ 51
4.5. Paternity Leave and Maternity Entitlements _______________________________________________ 52
4.6. Human Development Report 2015 _______________________________________________________ 53
4.7. Disability in India _____________________________________________________________________ 54
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4.8. Dalit Capitalism ______________________________________________________________________ 55

4.9. End of Ebola Epidemic _________________________________________________________________ 56
4.10. Kerala Becomes the First to Achieve 100% Literacy _________________________________________ 57
4.11. NATIONAL CENTRE FOR AGEING ________________________________________________________ 57
4.12. Balamurtham Programme _____________________________________________________________ 58

5. SCIENCE AND TECHNOLOGY _________________________________________________________ 60

5.1. Zika Virus ___________________________________________________________________________ 60
5.2. Space Parks: ISRO _____________________________________________________________________ 61
5.3. cansar Database ______________________________________________________________________ 61
5.4. Nano Technology and Superbugs ________________________________________________________ 61
5.5. Hydrogen Bomb ______________________________________________________________________ 62
5.6. HVDC Technology _____________________________________________________________________ 63
5.7. Opogenetics and Clarity ________________________________________________________________ 64
5.8. Cloud Computing AND Big Data__________________________________________________________ 64
5.9. Facebooks Free Basics Tussles With TRAI _________________________________________________ 65
5.10. Hisar Centre Second Institute to Clone Buffalo ____________________________________________ 66
5.11. Artificial Intelligence _________________________________________________________________ 66
5.12. Experimental Medicines Under the Exceptional Circumstances _______________________________ 66
5.13. 103rd Indian Science Congress and Technology Vision Document 2035 _________________________ 67
5.14. 23rd National Children Science Congress (NCSC) ____________________________________________ 68

6. INTERNAL SECURITY/LAW AND ORDER________________________________________________ 69

6.1. National Security Doctrine ______________________________________________________________ 69
6.2. Analysis of Pathankot Attack ____________________________________________________________ 69
6.3. Cooperatioon in Cybersecurity __________________________________________________________ 70
6.4. Natgrid _____________________________________________________________________________ 71
6.5. Tejas _______________________________________________________________________________ 72
6.6. Indian Reserve Battalion Forces _________________________________________________________ 73

7. ECOLOGY AND ENVIRONMENT ______________________________________________________ 74

7.1. International Solar Alliance (ISA)_________________________________________________________ 74
7.2. Bharat Stage VI Norms by 2020 __________________________________________________________ 74
7.3. Delhi's Odd Even Policy ________________________________________________________________ 76
7.4. Policy on Promotion of City Compost _____________________________________________________ 77
7.5. Stranded Carbon _____________________________________________________________________ 78
7.6. Bharat Innovation Fund ________________________________________________________________ 78
7.7. IMD Launches a System to Monitor Air risks and Black Carbon in Atmosphere ____________________ 79
7.8. Biodiversity Database for Urban India ____________________________________________________ 79
7.9. Ministry of Shipping Launches Project Green Port ___________________________________________ 80
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7.10. Initiatives Under Namami Gange Programme _____________________________________________ 80

7.11. Green Signal to 'Raptor MOU' __________________________________________________________ 81
7.12. Consultation on Biodiversity Finance Initiative Begins ______________________________________ 81
7.13. Snowflake Coral - A Serious Threat to Biodiversity _________________________________________ 82
7.14. Oceans to Have More Plastic than Fish by 2050 ____________________________________________ 82
7.15. Organic Farming _____________________________________________________________________ 82
7.16. El Nino and Warm Winter _____________________________________________________________ 83
7.17. Simultaneous Temperature Rise and Shrinkage of Glacier Ice Sheets at North Pole _______________ 84
7.18. Indian climate model to aid future IPCC Reports ___________________________________________ 84
7.19. Assessment of Cities under Swachh Bharat Mission (SBM) ___________________________________ 84

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1. POLITY AND GOVERNANCE

1.1. LODHA COMMITTEE RECOMMENDATIONS
Background

A sequence of events starting from the IPL 2013 spot-fixing scandal reached its logical conclusion when the
three-member Lodha panel submitted its report on the functioning of the BCCI to the Supreme Court on
January 4, 2016.
The report culminates the panels exhaustive investigations into
o How the game is run in the country
o What could be done to ensure that transparency and
accountability is the rule rather than exception.
The committee's 'Report on Cricket Reforms' is divided into four
parts
(a) In the first, the objectives of the committee are outlined.
(b) In second report, the problems associated with the BCCI- its
conflict of interest, corruption, lack of transparency, etc has
been identified and its solution has been recommended.
(c) The third part of the Report on Cricket Reforms is an
appendix containing the detailed questionnaire that was
provided to the BCCI and stakeholders.
(d) The fourth part is report on former IPL COO Sundar Raman in which committee has cleared former IPL
chief of wrongdoing in connection with the 2013 betting and spot-fixing scandal.
Key Recommendations

Distinct heads of concern areas for cricket

administration:
Structure: To resolve the issue of no proper representation of
Organization, structure and relationship
States the Committee proposed the solution in form of policy
Source and extent of jurisdiction
of One State One Member One Vote.
Offices, committees and elections
Governance: There are various issues like Concentration of
Commercial engagements, contracts
power, Lack
of
competence, Overlap
of
diverse
and services
functions, Zonal considerations, No representation to
Audit, accounts and finances
players and women, No independent voice, unlimited terms
Player welfare and dispute resolution
and tenures and No disqualifications. To resolve this
Conflict of interest
committee has recommended that governance of the BCCI
Oversight and transparency
must be decentralized.
Delinking IPL and BCCI: One of the important recommendation is to separate the IPL from the other
activities of the BCCI. The committee also proposed a revamp of the existing BCCI governing council (GC) and
its membership.
The committee also recommended the creation of three new positionsan ombudsman, an ethics officer
and an electoral officer.
Bring BCCI under Right to Information Act - People have the right to know the functions, facilities and other
activities of BCCI and it will also help in bringing transparency and accountability in BCCIs functioning.
Legalized betting The committee also recommended legalizing betting with strong safeguards. And even if
legalized for players and team officials, betting is a big no.
Players Association- It also recommended the establishment of players associations, which would offer
membership to all Indian international and most first-class cricketers who had retired not less than five years
ago.

Pros

The proposed measures could radically alter the way the BCCI functions and it will also improve its public
image and impart much-needed credibility.
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Recommendations such as restricted tenures, bar on holding more than one office at a time, limits on terms,
cooling-off periods between the holding of one office and another and steps to prevent conflict of interest
will be step in right direction if implemented in both spirit and letter.
One significant suggestion is that government servants and ministers be kept out of cricket administration.
Even if the political class as a whole is not barred, it will at least prevent influential politicians in government
eyeing the spoils of office in cricket administration.

Challenges

Its recommendation on legalizing the betting is a progressive one. However, its implementation, will hinge
on suitable local legislation across the country.
The BCCI will have to ensure strict adherence to the condition that players, managers, officials or anyone
associated with cricket are not allowed to participate in betting.
Recently, Sourav Ganguly led Cricket Association of Bengal (CAB) has decided to reject 10 out of the 21
Lodha Committee recommendations made by the Supreme Court.
Among the rejections are age and tenure issue and the recommendation that government officials can't be
the office bearers in BCCI or its affiliated units.

Way Forward:
The recommendations are progressive and are aimed at bringing transparency and effectiveness in the
administration of cricket body. However, Supreme Court should also seek the BCCIs view in this regard and try
to build a consensus for the better implementation of these recommendations.

1.2. ENEMY PROPERTY ORDINANCE, 2016 PROMULGATED

Why in news?
Recently, the President of India has promulgated the Enemy Property (Amendment and Validation) Ordinance,
2016 to make amendments to the Enemy Property Act, 1968.
Need

To ensure that the enemy property continues to vest in the Custodian,

appropriate amendments were brought in by way of an Ordinance in
the Enemy Property Act, 1968 by the then Government in 2010.
However, the ordinance lapsed in September 2010 and later introduced
bill was also lapsed because of completion of term of Lok Sabha.

Provisions of the Ordinance

What
constitutes
Enemy
Property?
Under the Defence of India
Rules framed under the Defence
of India Act, the Government of
India took over the properties
and companies of such persons
who had taken Pakistani
nationality due to partition of
India in 1947.
These enemy properties were
vested
by
the
Central
Government in the Custodian of
Enemy Property for India.

Once an enemy property is vested in the Custodian, it shall continue to

be vested in custodian as enemy property irrespective of whether the
enemy, enemy subject or enemy firm has ceased to be an enemy due
to reasons such as death etc.
Law of succession does not apply to enemy property.
There cannot be transfer of any property vested in the Custodian by an enemy or enemy subject or enemy
firm and that the Custodian shall preserve the enemy property till it is disposed of in accordance with the
provisions of the Act.

Impact of Ordinance

The above amendments to the Enemy Property Act, 1968 will help in plugging the loopholes in the Act to
ensure that the enemy properties that have been vested in the Custodian remain so and they do not revert
back to the enemy subject or enemy firm.
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Enemy Property Act, 1968 Provisions

The Enemy Property Act was enacted in the year 1968 by the Government of India, which provided for the
continuous vesting of enemy property in the Custodian.
The act authorized the Central Government of India to appoint a custodian for enemy property for India and
one or more deputy/assistant custodians as assistances.
There is also a provision which validates the appointments made under the Defence of India Rules 1962 and
1971.
The fees equal two percent on the gross income from the properties vested in the Custodian. The income
received by way of rent, interest etc. on securities is invested in the Reserve Bank of India.

1.3. TRANSPORT AND ROAD SAFETY BILL, 2015

Why in news?
Recently government has drafted a new TRANSPORT AND ROAD
SAFETY BILL, 2015 to reduce road accidents by at least 50%.
Aim of bill

Road accidents are one of the biggest killers

in India. Over 10 lakh people have been killed
in road accidents in India in the last 10 years
but the country is yet to have a stringent law
on the issue.

To provide a scientifically planned and evolving framework for

the safety of all road users in India, including vulnerable road users.
To enable the seamless development of a secure, efficient, cost-effective, sustainable and inclusive transport
system for the movement of passenger and freight in the country.

Salient features
1. Technology: It proposes adoption of new technology and standards with improved vehicle design for safer
travel. It also intends to make spare parts cheaper.
2. Funding: It proposes innovative financing mechanism for funding safety programs which would save over
200,000 lives in first 5 years due to reduction in road traffic accident deaths.
3. Motor Vehicle Regulation & Road Safety Authority of India: This Independent Agency will set regulations
for motor vehicle and road safety. It will finance road/vehicle safety program and will be Accountable to
Parliament.
4. Motor Vehicle Regulation: The bill sets up appropriate regulation regarding vehicles.
5. Unified Driver Licensing System: The bill proposed a simpler transparent, single window driver licensing
system that is based on biometric to avoid duplication
6. Unified Vehicle Registration System: It proposes a Unified Vehicle Registration System integrating all
stakeholders like manufacturer, owner, transport authority, insurer, and enforcement agency all in one ecosystem with private sector participation in establishing fitness certification centres to create more jobs.
7. Road Safety & Traffic Management :
Electronic enforcement in urban clusters using modern safety technologies with special emphasis for
safety of vulnerable road users

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8.

9.

10.

11.

12.

13.

Creation of Motor Accident Fund for immediate relief to accident victim special emphasis on safety of
school children and security of women.
National Road Transport & Multimodal Coordination Authority:
Creation of National Road Transport & Multimodal Coordination Authority for improving quality of road
transportation,
Focus on developing integrated transport systems & multi-modal hubs and feeder system and last mile
connectivity for people friendly mobility.
Public passenger Transport:
Increasing the share of public passenger transportation,
Two-tier permit system: national and intrastate permit and
Developing & regulating public passenger transport schemes and developing & regulating public
passenger transport schemes.
Goods Transport & National Freight Policy:
Simplified permits and single portal clearances,
Identification and development of freight networks,
Address bottlenecks concerning trucking industry and increase in logistics efficiency will reduce inflation
and enable Indian manufacturing to become globally competitive.
Infrastructure & Multimodal Facilitation:
Infrastructure for efficient passenger and goods movement,
Specific provision of infrastructural needs for vulnerable road users,
Integration across various modes of transport.
Offences and Penalties:
Graded penalty point system with enhanced fines will act as a deterrent and improve traffic condition by
reducing road rage.
It also seeks to come down heavily on traffic offenders and proposes steep penalties of up to Rs. 3 lakh
along with a minimum 7-year imprisonment for death of a child in certain circumstances, besides huge
fines for driving violations.
Highway Traffic Regulation and Protection Force: for the purpose of effective policing and enforcement of
traffic regulations on highways, an armed force of the State to be called the Highway Traffic Regulation and
Protection Force.

Q. What ails Indias road transport economy? Suggest measures of remedy. (CSE MAINS 2004)
Q. Technological changes have brought in a major shift in the use of roads as transport corridors in India. How far do you
agree with this view? (CSE MAINS 2007)
Q. National urban transport policy emphasizes on moving people instead of moving vehicles. Discuss critically the success
of various strategies of the government in this regard. (CSE MAINS 2014)

1.4. BLACK SPOTS IN ROAD SAFETY

Why in news?
There has been increasing concern over about five lakh road accidents in the country every year in which about
1.4 lakh people lose their lives. Majority of these have been linked to Black spots.
What are Black spots?
They are road locations that have a record of large numbers of crashes. There are often common problems
at these sites which can be treated with engineering methods.
Reason for Black spots is noncompliance with Road Safety Norms during design, construction and operation
of roads including National Highways.
Below are most common Black spots:
o Sharp drop or corner in a straight road so oncoming traffic is concealed
o Hidden junction on a fast road
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o Poor or concealed warning signs at cross-roads.

325 most dangerous black spots have been identified in 13 States. These spots account for about 90% road
accidents.

Steps taken by Government in this issue:

A website has been launched to help in identifying black spots where accidents take place frequently. The
people can send information about such spots to the Ministry of Road Transport & Highways which will
further take up the issue with the concerned authorities.
Work on ten black spots in Delhi has being taken up.
Rs. 11,000 crore has been earmarked in the next five years to fix black spots across the country

1.5. PORTALS FOR BRINGING TRANSPARENCY IN ROAD PROJECTS

What is the news?

NHIDL will come up with two more portals 'Infracon' and 'ePace' that will provide all necessary details
regarding highway projects.
Centre also launched INAM-PRO platform for infrastructure and material providers.

INFRACON
It will have all the information
about individual consultants and
consultation firms
It would serve as a platform for
infrastructure consultants where
individual consultants as well as
consulting firms could register
themselves.
There credentials would be made
available there and can be
accessed by people
It will make available the largest
pool of consultants in the field.

INAM-PRO
Portal will enable
central or state
government
agencies
register
and procure cement
directly
from
suppliers on cheaper
rates on "cash and
carry basis
Already 33 cement
firms and 107 plants
are registered with
committing cement
at cheaper rates for
projects.

e-PACE
It will help people know about
highway projects status, funding and
other details
About NHIDL:
NHIDCL, incorporated in July 2014 as a
fully owned company of the Ministry of
Road Transport & Highways to fasttrack highways construction in border
areas and tough terrains has been
instrumental to develop Infracon web
portal.

Application:

All necessary details including project report and current status and all important data will be available on
the platform.
Big boost to Make in India (Ease of doing business) using Digital India applications
Will promote transparency and efficiency in highway projects which are one of the major reasons for stalled
projects and rising banks NPA

1.6. CENTRE TO SET UP ROAD SAFETY REGULATOR

The Centre is planning to expedite a proposal to set up a road safety regulator in India.
Need

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In India, around 1.5 lakh people are killed in road accidents every year.
In most of the urban areas, there are many potholes on the roads which lead to many accidents in cities.
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Last year Center has awarded contracts to build approximately ten thousands kilometers of roads in India so
effective monitoring is needed to ensure the quality construction.

Benefits

It will push automobile companies to introduce airbags in economy cars.

It will also push states to conduct safety audits of state highways and district roads.
It will be helpful in ensuring road safety norms in India.
It will also ensure the effective maintenance of the roads.

1.7. ELECTORAL TRUST

What is Electoral Trust?

Electoral Trust is a company or a non-profit company created in

Election Commission of India is a
India under Section 8 of the Companies Act for orderly receipt of
permanent Constitutional Body. The
the voluntary contributions from any person and for distributing
Election Commission was established in
the same to the respective political parties, registered under
accordance with the Constitution on 25th
Section 29A of the Representation of People Act, 1951.
January 1950. Originally the commission
Examples of Corporate Trusts: Bharatiya Socialist Republican
had only a Chief Election Commissioner.
It currently consists of Chief Election
Electoral Trust, Bajaj Electoral Trust and Jankalyan Electoral
Commissioner
and
two
Election
Trust, Progressive Electoral Trust (Tata), Peoples Electoral Trust(
Commissioners.
Reliance Industries), Janhit Electoral Trust, Satya Electoral Trust
Corporates are entitled for tax benefits with regard to electoral trusts subject to certain conditions.
The benefits can be availed only if the trusts distribute 95% of the total contributions received in a particular
fiscal to registered political parties in that same year itself.
These entities are barred from receiving donations in cash. Foreign citizens are not allowed to contribute
money to the trusts.

Objective

The objective of the Electoral Trust is not to earn any profit or pass any direct or indirect benefit to its
members or contributors.
The sole objective is to distribute the contributions received by it to the political party concerned.
This is a mechanism for bringing transparency and sanity in the political party funding.

Why do corporates and politicians prefer electoral trusts?

It spares them the embarrassment of baring their political leanings (maintaining anonymity).
It also spares them the resultant pain of retribution by the political party not benefiting from the companys
munificence.
Even Political parties lack anonymity.

1.8. ELECTION COMMISSION SEEKS FULL INDEPENDENCE

Why in news?

11

The Election Commission of India (ECI) has sought complete independence from government control in a
recent meeting with government.
At present only Chief Election Commissioner has security of tenure
Also its budget is not a charged expenditure, but is voted by the Parliament.

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Demands made by ECI

It has demanded for constitutional protection for all three of its members as opposed to just one at present.
Its two Election Commissioners can be removed by the government on the recommendation of the Chief
Election Commissioner.
It also demanded a provision either in law or by some government resolution that the senior most EC should
be automatically elevated as CEC in order to instill a feeling of security in the minds of the ECs and that they
are insulated from executive interference in the same manner as CEC.
It has also sought absolute financial freedom from the Law Ministry. Like the CAG and UPSC, the ECI wants
its budget to be charged to the Consolidated Fund as opposed to the current practice of being voted and
approved by Parliament.
It has also proposed an independent secretariat for itself with which it will not have to depend on DoPT to
appoint its officers. If it is approved by the Law Ministry, the poll panel will be free to frame its own
recruitment rules and shortlist and appoint officers on its own. It can then also draw competent
professionals and experts from the job market.
It has pushed for the introduction of totaliser machines for counting of votes and multiple cut-off dates for
voter registration. The totaliser machine increases the secrecy of voting by counting votes polled at 14
polling booths together, as against the current practice of announcing booth-wise results. According to the
poll watchdog, the identification of area-wise voting trends could encourage candidates and political parties
to be vindictive with voters of those areas who did not vote for them.

1.9. CHALLENGES WITH SPV IN SMART CITIES

Apart from criticism on the quality of proposals and public participation, there were indications of a few cities
hesitant to submit their proposals.

Reasons for setting up SPVs

o

To ensure objective and efficient decision making,

independent of municipal councils, which are subject to
local politics. The Smart Cities Mission (SCM) guidelines
mandate an equal share of equity contribution by the
state government and urban local body, thereby making
them the majority shareholders.

Concerns regarding Special Purpose Vehicle (SPV), which is

to be mandatorily constituted for the implementation of
their respective Smart City Plans.
o

The absence of clarity on specific projects and assured revenue streams,

Combined with a lack of management control, may reduce the attractiveness of SPVs for private
investors.

Regulatory
o

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Private sector led seen as defeating essence of local self-governance and bypassing the elected
municipal council.
SPV may be headed by a bureaucrat, which is a concern for local representation.

For private sector

o
o

An SPV is a legal entity created for a specific

purpose, which can theoretically be shut
down after the specified purpose has been
achieved.
The major advantage of an SPV is that it
allows investors to limit their risks and
maximize profits, and bypass cumbersome
legal and regulatory issues.

For Local Bodies

WHAT IS A SPV?

Criteria: The SCM guidelines stipulate that government funding can only be used for projects that have
public benefit outcomes. Criteria to decide the degree of public benefit of projects is unclear.
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Convergence: The manner in which a smart city SPV interacts with the implementing agency for HRIDAY,
and how two projects under the two separate programmes complement each other, is yet to be seen.
For example, Varanasi is included under both SCM and the Heritage City Development and
Augmentation Yojana (HRIDAY).

Solutions:
o

o
o
o

An important first step would be to build safeguards to protect the democratic nature of governance
structures. A robust governance structure, which allows for sharing of power and financial resources
between urban local bodies and the private sector stakeholders, would go a long way towards assuaging
fears.
Government should clarify the financial nature of SPVs and how the private sector can contribute
effectively.
Critical issues of capacity and skill building for local bodies need to be addressed in parallel.
Matters related to intellectual property rights, open standards and technology transfer should be
enshrined at the highest level of government since it is difficult for individual urban local bodies to
negotiate with private parties.

1.10. NAYI MANZIL SCHEME

Why in News?

Recently, the Union government and the World Bank signed a $50-million credit agreement for Nai Manzil
project.
The Scheme is aimed at helping young people from minority communities complete their education and
improve their employment opportunities.
Recently, this scheme has been launched for the first time in Jammu and Kashmir by the Minister of Minority
Affairs.

Importance

According to the World Bank, around 20 per cent of those between 17 and 35 years of age from minority
groups such as Muslims, Parsees, Jains, Buddhists, Christians, and Sikhs are out of the labour force.
So to harness Indias demographic dividend completely it is important that all young people from all sections
of society are equipped with the education and skills needed to make them productive members of the
economy.

Features of the scheme

13

This scheme is launched by the Ministry of Minority Affairs in August 2015.

The aim of the scheme is employment generation of the youths and also extending loans for opening
enterprises.
The scheme will address educational and livelihood needs of minority communities in general and Muslims
in particular as it lags behind other minority communities in terms of educational attainments.
The scheme is intended to cover people in between 17 to 35 age group from all minority communities as
well as Madrasa students.
The scheme would provide bridge courses to the trainees and get them Certificates for Class XII and X
through distance medium educational system and at the same time also provides them trade basis skill
training in 4 courses Manufacturing, Engineering, Services, Soft skills.
Minimum 30% seats are earmarked for minority girls.
It includes a Non-residential programme of 9-12 months duration involving a Basic Bridge Programme (For
Class VIII or Class X) for their education, along with training in trade based skills for sustained
livelihood/gainful employment.
The scheme covers the entire country.
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1.11. OPEN BOOK EXAMINATION

Why in news:
Centre urged state level and central board schools to consider Open Text Based Assessment (OTBA) at board
level after the recommendation of eight member committee.
WHAT IS OPEN BOOK EXAMINATION:

Open book examination is a system of assessment in which students can refer to their notes or textbook
while answering the question.
Examinees are expected not to merely reproduce textbook material, but to interpret it in the context of
specific question which require conceptual understanding.

PROS

More clarity of concepts for students, this would develop their cognitive skills.
More focus on application aspect than mugging the curriculum.
Less anxiety and fear during examination.
Understanding of application would make students aware socially and environmentally.

BOTTLENECKS

Capacity building of teachers is required in framing relevant questions to judge the understanding of
students, and shift away from current mechanical teaching and evaluation process.
Since education is in state list, hence state boards reluctance or delay in implementing OTBA could be
problematic.
Culturally in India, since ancient times merit has been judged through rote learning. Hence, acceptance in
the society towards OTBA would need behavioral change.

1.12. PANEL TO SUGGEST MEASURES FOR THE REVAMP OF CBFC

Government has set up a panel headed by Shyam Benegal to suggest measures for the revamp of the
Central Board of Film Certification (CBFC).
The CBFC which was constituted on the basis of the Cinematograph Act, 1952, needs radical revision in a
world where the idea of state censorship has few takers.
The Justice Mukul Mudgal Committee in 2013 had also inquired into similar issues and submitted a report
after conducting extensive consultations with stakeholders.
The panel gave recommendations various issues, including certification and the selection of members to
the CBFC, another contentious area since governments tend to use the board to disburse patronage.
Hence, setting up of a new panel in this regard is a step in right direction and government should also ensure
that panels recommendations are implemented properly.

Central Board of Film Certification (CBFC)

It is a statutory body regulating the public exhibition of films under the provisions of the Cinematograph Act
1952.
Films can be publicly exhibited in India only after they have been certified by the Central Board of Film
Certification.
It assigns certifications to films, television shows, television ads, and publications for exhibition, sale or hire
in India
The Board consists of non-official members and a Chairman (all of whom are appointed by Central
Government) and functions with headquarters at Mumbai.

14

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1.13. NHAI TO USE SATELLITE TECHNOLOGY

To monitor national highways and road assets,

What is geospatial technology/remote sensing
Government has decided to use geospatial technology
centre
and Unmanned Aerial Vehicles (UAV).
Geospatial technology refers to all the technologies
Govt. signed MOUs with Remote sensing Centre and
like GPS, Remote Sensing etc. which are used to
NECTAR for the purpose.
acquire, manipulate and store geographic
A 24/7 technical centre to be setup to provide project
information.
specific inputs to engineers using these technologies.
Remote Sensing Centre is an organization under
ISRO with responsibility of data analysis of several
It will be useful in providing inputs in highway and
satellite images. It is located in Hyderabad
infrastructure projects for effective and precise

North East Centre for Technology Application and

preparation of detailed project report, upgrade, road
Research (NECTAR), headquartered at Shillong is
widening and monitoring of under construction sites.
responsible for developing niche technology for
It will help in quick completion of infrastructure
development purposes.
projects.
It will help in quick identification of problematic area using drones, course correction would then be precise
and faster.

1.14. INDIA RANKED 76TH IN CPI 2015

Berlin based Transparency International's Corruption

Perceptions Index (CPI) 2015 released on Wednesday shows
that India has moved up in rank from 85th position to 76th.
India's score in the Corruption Perceptions Index (CPI) for 2015
remained unchanged at 38 as it was in the previous year.
India shares its rank along with six other countries: Brazil,
Burkina Faso, Thailand, Tunisia and Zambia.
The number of countries ranked in 2015 was 168 against 174
nations in 2014.

Global Scenario:

What is corruption perceptions index?

CPI, the most widely used indicator of
public sector corruption worldwide, is a
composite index that combines the
results of surveys and assessments of
corruption, collected by a variety of
reputable institutions including the
World Bank and the World Economic
Forum.
It looks at a range of factors like whether
governmental leaders are held to
account or go unpunished for corruption,
the perceived prevalence of bribery, and
whether public institutions respond to
citizens needs.
As per the scoring system adopted,
higher the score points on a scale of 0100, lower is the corruption in that
country.

1. Globally, Denmark retained its position as the least corrupt

country for the second year running (with its latest score of 91
points).
2. Next in line are Finland and Sweden with scores of 90 and 89
points respectively.
3. The big decliners in the past four years include Libya, Australia,
Brazil, Spain and Turkey.
4. The big improvers include Greece, Senegal and UK.
5. Overall, two-thirds of the 168 countries studied scored below 50, and the global average stood at 43.
6. China fared worse than India and Brazil at rank 83 with a score of 37.
7. TI has also noted that Pakistan is the only country among the SAARC countries, to have improved its score
this year, though its rank remains poor at 117.
Neighbourhood Scenario:

15

Barring Bhutan ranked 27, which with a score of 65 fares much better than India, other neighbouring
countries continue to have a poor record.
While China at rank 83 and Bangladesh at rank 139 have reported no improvement,
Scores of Pakistan, Sri Lanka and Nepal have increased marginally over the past year

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Observations of Transparency International:

Top country performers share key characteristics such as:

o high levels of press freedom;
o access to budget information so the public knows where money comes from and how it is spent;
o high levels of integrity among people in power;
o Judiciaries that don't differentiate between rich and poor, and that are truly independent from other
parts of government.
The report also says 68% of countries worldwide have serious corruption problem and half of the G20 are
among them.
64 countries had improved their score while only 53 declined. The rest remained unchanged.
Even globally, there seemed to be an overall improvement in corruption alleviation with both the United
States and United Kingdom making their best rankings ever

1.15. NATIONAL AWARD ON E-GOVERNANCE

The Employees Provident Fund Organisation has won the National Award on e-Governance 2015-16 for
launching the Universal Account Number (UAN).
The EPFO won the gold award in the innovative use of technology in e-governance category.

Employees Provident Fund Organisation

The Employees Provident Fund Organization is a statutory body, is one of the largest social security
organizations in India in terms of volume of financial transactions undertaken and number of covered
beneficiaries.
It works under the overall aegis of the Ministry of Labor and Employment.
It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance
Scheme.
These schemes cover Indian workers as well as International workers (for countries with which bilateral
agreements have been signed.

UAN Scheme

On 1 October 2014, Prime Minister of India launched universal account number for Employees covered by
EPFO to enable PF number portability.
Through UAN, active employees are provided a universal number which can be linked to various provident
fund account numbers provided to them while working in different organizations.
A single account number can be used through all of workers employments with various organizations.
The online portal allows a worker to view his provident fund balance on a real-time basis without going
through the employer again and again.

1.16. RIVER INFORMATION SYSTEM

Why in news?

16

Union Minister of Shipping, Road Transport and Highways

inaugurated the River Information System (RIS) System on 06th
January.
It will facilitate safe and accurate navigation on National
Waterway 1 on the Ganges River.

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RIS are modern traffic management

systems enhancing a swift electronic
data transfer between water and shore
through in advance and real time
exchange of information.

Vision IAS

Salient features

It is being implemented under the overall responsibility of Inland Waterway Authority of India, a statutory
body administered by the Ministry of Shipping.
RIS aims to streamline the exchange of information between waterway operators and users.
This would facilitate:
o Enhancement of inland navigation safety in ports and rivers.
o Better use of the inland waterways
o Environmental protection
RIS enables achievement of safe and efficient inland water transport by avoiding Ship- to - Ship collisions,
Ship - Bridge collisions and Groundings.
Installation of an efficient and effective River Information Service (RIS) system on the Sagar- Farakka stretch
of NW-1 is akin to the systems under operation in countries like the Netherlands, Belgium, Germany, China &
USA.

1.17. WEB BASED RAIL TRACK MANAGEMENT

Why in news?
In a major step towards digitization, the Indian Railways on Monday launched a web-based system to monitor
track maintenance on a real-time basis by replacing more than a lakh registers related to it.
Present System:
Management of track maintenance is done largely manually.
It involves handling of huge volumes of data statistics as well as analysis of various measurement and defects
and planning, deployment of large resources.
The web-based management of track maintenance will be implemented in all the 68 divisions of the Indian
Railways.
Various activities such as track inspection, monitoring and maintenance will now be done on the e-platform.
The system will be cost and time saving.
The system will give alerts through SMS and e-mails to the concerned officials in the Railways.
This system is designed for:
o Decentralized data capturing.
o Speedy information dissemination.
o Centralized data keeping and analysis.

1.18. BUREAU OF MINES TIES UP WITH NRSC

17

The Indian Bureau of Mines has signed a memorandum of

Bhuvan
understanding (MOU) with the National Remote Sensing Centre
A software application which allows users
of the Department of Space for monitoring mining activity
to explore a 2D/3D representation of the
through satellite technology.
surface of the Earth. The browser is
As part of the MoU, the IBM would set up an exclusive remote
specifically tailored to view India, offering
sensing cell under the technical guidance of the NRSC at its
the highest resolution in this region and
providing content in four local languages.
offices in Nagpur and Hyderabad.
The cell will utilize Bhuvan-based services for monitoring mining
activities as also for development of mobile app for field data collection to verify ground realities with
respect of approved proposals.
The NRSC would carry out a pilot project to demonstrate the feasibility of using high resolution satellite
imagery in monitoring the changes over a period of time in select group of mines.
The MoU paves the way for sustainable development and responsible use of natural resources.
The departments concerned could leverage technology for near real time monitoring of the assets and
ascertain whether the mining licensee was indulging in any irregularities.
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It will also study the feasibility of utilizing technology for restoration of the closed mines and areas where
mining activities took place.
The MoU envisaged training for the IBM staff in using the technology and this would be subsequently
extended to the State Governments in the course of time.
The MoU was significant for the IBM in the context that the officials could now monitor the activity through
satellite technology instead of physical inspection every time.
Technological intervention would keep check on illegal activities.
It could also be utilised for research and development in mining.

1.19. GOVERNMENT TO RELAX MINING LEASE TRANSFER RULES

(MMRDA BILL)
Why in news?

The government plans to enact a law that will allow companies that received mining licences without having
gone through the auction process to transfer these leases
This move will make mergers and acquisitions (M&As) easier in the steel cement, and metals sectors.
Last year, the government brought in the Mines and Minerals (Development and Regulation) Amendment
Bill, 2015, replacing a 1957 legislation, and said mining licences could only be auctioned.

Mines and Minerals (Development and Regulation) (Amendment) Bill, 2016

It would amend the Mines and Minerals (Development and Regulation) Act, 1957 to allow the transfer of
mining leases granted otherwise than through auction.
This would facilitate banks and financial institutions to liquidate stressed assets where a company or its
captive mining lease is mortgaged.
The transfer provisions will also allow mergers and acquisitions of companies and facilitate ease of doing
business for companies to improve profitability and decrease costs of the companies dependent on supply of
mineral ore from captive leases.
The transfer of captive leases would be subject to the consideration of enforcing Performance Security, Mine
Development and Production Agreement (MDPA), and realization of an appropriate amount, if any, if found
feasible at the time of framing terms and conditions.

Benefits

This will help a lot of mines to come into production, which were earlier held up because the original lease
holder had difficulties in developing them and could not transfer to others.
This would benefit a lot of mines that are at different stages of development.
The existing restriction on transfer of mines not allotted through an auction had also led to lenders funds
getting stuck in projects. The move to allow transfer of mines will speed up consolidation in the industry.

1.20. KILKARI PROJECT

Why in news
Kilkari, a mobile voice message service will be launched by Central Government soon.
Salient Features of the Scheme

18

This service will deliver weekly messages to families about pregnancy, family planning, nutrition, childbirth
and maternal and child care.

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The database for the Kilkari programme will be taken from the successful Mother and Child Tracking System
(MCTS) to monitor pregnant women and babies.
Every woman registered with MCTS will receive weekly messages relevant to the stage of pregnancy and age
of the infant.
In all, 72 free audio messages, each of about two-minute duration, will reach targeted beneficiaries from the
fourth month of pregnancy until the child is a year old.
In the first phase, the Kilkari application is expected to benefit 1.84 crore pregnant women/newborns in
Jharkhand, Odisha, UP, Uttarakhand and in some districts of Madhya Pradesh and Rajasthan.
The messages will be delivered in languages chosen by the user. In phase one, scheme will be launched in
Hindi, Odiya and hopefully Santhaali and Chhotanagpuri.
In phase two, it will be various dialects of Rajasthan, and then we will extend to other languages.
The Bill and Melinda Gates Foundation has provided the mobile phone application for Kilkari and mobile
academy.
In Bihar, same scheme has been already launched as a paid service.

1.21. ANUBHAV

The Department of Pension & Pensioners welfare has launched online software -Anubhav.
It will showcase the outstanding work by retiring employee and sharing experience of working with the
Government.
It will also provide facility to upload recorded voice message by the retiring employee.
Over a period of time, this will create a wealth of institutional memory with replicable ideas and suggestions.
It will also act as motivator for serving employees.
This would provide an excellent opportunity to harness the resource of retiring employees for voluntary
contribution to nation building post retirement.

1.22. KERALA
VERDICT

19

LIQUOR

PROHIBITION

POLICY-

SUPREME

COURT

The Supreme Court has approved Keralas new liquor policy that prohibits drinking in public and restricts
serving of alcohol to five-star hotels.
While delivering the order, Supreme Court has also reminded all state governments that the constitution
places a responsibility on them to at least contain, if not curtail, consumption of alcohol.
Courts view was that the prices of alcohol in five-star hotels is usually prohibitively high, which acts as a
deterrent to individuals going in for drinking and made an exception in favour of five-star hotels because of
the interest of tourism sector in state.
Kerala, accounts for nearly 14 per cent of the countrys liquor consumption.
Alcohol prohibition in India is in force in the states of Gujarat, Nagaland and parts of Manipur as well as in
the Union Territory of Lakshadweep. Bihar has announced a ban on alcohol sale starting 1 April 2016.
Article 47 (Part of Directive Provision of State Policy) states that the State shall endeavor to bring about
prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are
injurious to health.
The policy led to the closure of over 700 bars and restricted liquor availability to nearly 20 five-star hotels.

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1.23. NATIONAL DEVELOPMENT COUNCIL (NDC) TO BE SCRAPPED

Union government has decided to scrap National

Development Council.
Government also passed a resolution for transferring its
powers to the Governing Council of the NITI Aayog.

Reasons for scrapping NDC

Prior to NITI Aayog, states' role was limited to the National

Development Council and annual interaction during Plan
meetings.
However, after creation of NITI Aayog, state governments
are expected to play a more significant role than they did in
the Planning Commission. They are directly involved in
decision making in NITI Aayog, because of this, role of NDC
has become less important and redundant.
Hence, present government has decided to scrap the NDC
which is a step in right direction keeping the consistency in
decision making and policy implementation.

What is NDC?
National Development Council (NDC) was
setup in 1952 by an executive order, served as
the highest decision making authority in the
country on development matters.

1.24. MERGING OF MOIA WITH MEA

20

Prime Minister has approved the long-awaited merger of the Ministry of Overseas Indian Affairs (MOIA) with
the Ministry of External Affairs (MEA).
Substantial work of MOIA is done through External Affairs missions abroad so there was point in having two
different ministries for the same staff.
It will help in preventing duplication and delay in various works.
It will help in efficient functioning of the ministry.

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2. INTERNATIONAL RELATIONS
2.1. WORLD DEVELOPMENT REPORT 2016

World Bank published its annual World Development Report (WDR). It explores the impact of the internet,
mobile phones, and related technologies on economic development. It proposes policies to expand
connectivity, accelerate complementary reforms in sectors beyond information and communication
technology (ICT), and address global coordination problems.
The 2016 WDR issue titled Digital Dividends,
noted that almost 1.063 billion Indians were offline
even though India ranked among the top five
nations in terms of the total number of Internet
users, along with China, the U.S., Japan and Brazil.
Growth, jobs, and services are the most important
returns to digital investments. They are referred as
digital dividends.
WDR pointed reasons for digital dividends not
spreading rapidly. First, nearly 60 percent of the
worlds people are still offline and cant fully
participate in the digital economy. There also are
persistent digital divides across gender, geography,
age, and income dimensions within each country. Second, some of the perceived benefits of the internet
are being neutralized by new risks. Vested business interests, regulatory uncertainty, and limited
contestation across digital platforms could lead to harmful concentration in many sectors.
Report argues that Digital investments need the support of analog complements: regulations, so that
firms can leverage the internet to compete and innovate; improved skills, so that people can take full
advantage of digital opportunities; and accountable institutions, so that governments respond to citizens
needs and demands. Digital technologies can, in turn, augment and strengthen these complements
accelerating the pace of development.
The report concludes that Digital development strategies need to be broader than ICT strategies.
Connectivity for all remains an important goal and a tremendous challenge. But countries also need to
create favorable conditions for technology to be effective.
When the analog complements are absent, the development impact will be disappointing. But when
countries build a strong analog foundation, they will reap ample digital dividendsin faster growth, more
jobs, and better services.

2.2. TFA IN SERVICES- INDIAS PERSPECTIVE

21

India is pitching aggressively for TFA in services to the WTO.

The Mode 1 negotiations pertain to
India considers free movement of professionals (Via Mode 1 and
business process outsourcing, which
Mode 4) is in the interest of India and the world.
are generally known as cross-border
TFA in services will ensure liberalised visa regime such as multiple
services
entry visas, visa-free travel for foreign tourists and long term

Mode 4 negotiations provides for

visas for business community.
movement of natural persons
Beside that India is also looking at data privacy hurdles.
India wanted to be recognised as a data secure country as it is
important for meaningful access in cross border supply (Mode 1)
Data secure status has been a highly contentious issue in bilateral investment and trade negotiations with
the European Union.

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Why India needs TFA in Service sector

India is very strong in the services area as the sector contributes over 50 per cent in the countrys economic
growth.
A special initiative on services sector is needed. To achieve this, it is imperative to put in place a simple and
transparent regulatory framework that encourages growth in the services sectors.
To boost export of services India is working on reform measures in education and legal services.
India is working on garnering support on the issue by holding meetings with like-minded Nations.

What is TFA?

Trade facilitation agreement, is aimed at streamlining customs rules and procedures across the member
nations and reduce transaction cost by expediting trade flows, has been pushed by developed countries.
However it is yet to be implemented as it will come into effect only when two-thirds of the member nations
ratify it. As of now 63 countries of the 162 nations have ratified it while India is yet to ratify it.

Non-issues at WTO talks

A global agreement to lower trade barriers under Doha Round

negotiations is supposed to take place into the WTO.
India firming up a strategy to prevent attempts by rich nations to
introduce new pro-corporate issues.
India will make it clear that discussions on any new issue can take place
only after resolving all the outstanding matters related to the Doha
Round talks.

What are new pro-Corporate issues?

Of which the rich nations have superior standards or rules than the
developing and poor countries.
These include global value chains, e-commerce, labour, climate-related
trade (such as environmental services and goods), competition policies,
investment pacts, government procurement and state-owned enterprises.

What are the outstanding

issues?
An
effective
Special
Safeguard Mechanism (or a
tool to help developing
countries
protect
the
interests of their poor farmers
by temporarily increasing
duties to counter farm import
increase and price fall).
A permanent solution for the
issue of public stockholding
for food security purposes.

Why India is opposing such move

22

The developing nations including India feel these standards or rules may become non-tariff barriers,
In turn it will hurt their exports to rich nations
The rich nations will be able to indirectly open up the developing markets through an agenda that includes
'new issues
India, along with other developing countries, especially most members of the G-33, LDCs, the Africa Group
and the ACP, wanted a reaffirmation of the mandate of the Doha Round.
India had opposed the declaration brought out after the WTOs ministerial conference (its highest decision
making body) in Nairobi last month as it did not include measures primarily meant for improving trade
prospects of developing and poor nations.
India also oppose Rich nations attempts to bring in any non-trade and WTO-plus issues such as labour and
environment into the RCEP.
India wants that any country pitching for the introduction the new issues will first have to ensure that they
meet two criteria.
o To establish the relevance of these new issues in the context of trade
o To ensure that there is a consensus among all 162 WTO member countries in taking up such an agenda

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2.2. BEIJINGS RACE FOR THE EURASIAN HEARTLAND

Chinas Eurasian Pivot: What is it?

It is part of Chinas One Belt, One Road (OBOR) strategy, to enhance Eurasian economic connectivity
through the construction of a Silk Road Economic Belt (SREB) and a Maritime Silk Road (MSR)
Pivot west to Eurasia seeks to turn its vulnerability a border with fourteen nations into a strategic asset
Equally significant has been Beijings partnership with Moscow: Russia was a major partner in building the
Chinese military deterrent (S-400 air defense deal, su-35 fighter planes), China has also signed a $400 billion
import deal with Russia for the next 30 years.
Two are trading in the Chinese yuan and the Russian ruble through currency swap agreements

Why China is focusing on EURASIA now?

What region is EURASIA?

Eurasia is the combined
continent of Europe and Asia.
All countries in Europe and Asia
are part of Eurasia. There are
103 countries with major
countries being China, Russia,
India and ASEAN.

It is Chinas response to the Pivot to Asia doctrine or Rebalance to Asia

policy of USA
Western markets still remained trapped by the impact of the 2008
economic crisis, China is taking major steps to restructure its economy
through mega-investments in Eurasia under its Belt and Road initiative.
Instead of pitching financial reserves in U.S. treasury bonds, China has
decided to put large amounts of its surplus reserves in building railways,
highways, industrial parks, and cyber-cities along the Silk Road Economic Belt, one that stretches from Xian
in the East to Europe in the West.
China wants to shift its focus of development on western part of the country from eastern side especially
areas like Xinjing and Tibet.
Rising tensions between Russia and USA, and china emerging as a natural ally of Russia
Belt and Road initiative needs cooperation not only of Russia, which will take care of the western flank, but
also of its eastern, South Asian flank, through India and Pakistan also.

Role of India and its Implications:

India is a major partner in South Asian region and China wants India to be a major stakeholder in one belt
one road initiative.
Though India has not given any official position on this policy.
China has brought India on board the Eurasian platform by partnering it in major initiatives to transform the
international financial architecture e.g. through BRICSs Bank and The New Development Bank

2.3. WEST ASIAN CRISIS DEEPENS BETWEEN IRAN AND SAUDI ARABIA
Why in news?

Saudi Arabia executed leading Shia cleric Sheikh Nimr al-Nimr.

Following the execution protesters in Shia-majority Iran attacked the Saudi Embassy in Tehran.
The Saudis have cut diplomatic relations with Iran over the attack on its embassy.

What is the root cause?

Shia dominated countries: Iran, Iraq, Syria, Bharain (ruled by sunnis), Lebanon
Sunni dominated countries: Saudi Arabia, UAE, Qatar, Sudan, India, Pakistan.

Reasons for rift between Shia and Sunni blocks:

23

Religious: Shia and Sunnis share a different ideology on religious tenets on a 1000 year old question on who
should rightful heir after the death of Prophet Muhammad.
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Iranian revolution of 1979: Shia religious authorities took over and started backing Shia militias in other
Shia dominated countries.
Riyadh in turn strengthened links with other Sunni governments, including the formation of the Gulf Cooperation Council.
Arab Spring saw Iran support its ally, Syrian President Bashar al-Assad, with the Saudis backing the
opposition
Successful P5-Iran nuclear deal and US interest in Iran, has many consequences for Saudis and they are in
opposition to this deal.
Saudi Arabia feels rise of Iran a major threat to its domination in West Asia.
Bahrain, Saudi troops helped put down anti-government protests by the majority Shia population there.
Iranian fury over a deadly stampede during last year's Hajj pilgrimage and a more assertive Saudi foreign
policy since the new king Salman took charge.
Yemen is the new playground for fight between Shia and Sunnis.

Implications on India:

Iran is important to India for its ports viz: Bandar

Abbas ports and Chahabar ports. Both are
important to India for its entry to Afghanistan and
NSTC corridors.
India is also a major trade partner and Iran is a
major exporter of cheap crude oil to India.
Several major Indian companies including Larsen &
Toubro, Tata Consultancy Services, Tata Motors,
Wipro, Infosys, etc. operate in Saudi Arabia.
Indian exports to the kingdom include mineral fuels
and oils, chemicals, iron and steel and electric
machines.

2.4. CHINA-IRAN RELATIONS

Why in news

President Xi Jinping became the first world leader to visit Iran after sanctions were lifted following the
nuclear deal.

Salient points

In Tehran, he talked about a new season of Sino-Iranian ties and a 25-year strategic cooperation plan,
committing to increase two-way trade to $600 billion over the next decade.
He also demonstrated the integration of West Asia in its New Silk Road connectivity project by flagging a
train from its trading hub of Yiwu to Tehran.
This container train will cover a journey of 10,399 km in its maiden journey to West Asia in 14 days. It will
exit China through Alataw Pass in western Chinas Xinjiang province, and then pass through Kazakhstan and
Turkmenistan before heading for the Iranian capital.
Both countries have agreed to enhance security cooperation through intelligence sharing, counter-terror
measures, military exchanges and coordination.
Beijing would also support Irans full membership in the Shanghai Cooperation Organisation, a China-led
regional security framework.

Irans importance for China:

1. Iran is vital for Chinas continued rise. Its strategic location connecting West Asia and Central Asia is key to
President Xis One Belt, One Road initiative
24

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2. Iran offers immense investment opportunities for Chinese companies in several areas, particularly in energy
and infrastructure.
3. The geopolitical value of Iran is immense for any power that seeks an ambitious role in West Asia.
4. From Chinas point of view, Iran is among the most stable countries in the region. And its the only major
country in West Asia where the U.S. has practically no influence.
Chinas Position towards Iran during Sanctions:

During Irans isolation era, China adopted a dual approach: it supported UN resolutions against Irans nuclear
programme while expanding economic and security cooperation with Tehran.
During this period, China overtook the European Union as Irans largest trading partner. Chinese-Iranian
trade increased from about $3 billion in 2001 to over $50 billion in 2014.
Security ties also flourished at a time when international negotiations on Irans nuclear programme were
going on. In 2010, Chinese fighter jets refuelled in Iran, the first foreign military units permitted on Iranian
soil since the Islamic Republic was established. Chinese warships paid a visit to the Iranian port of Bandar
Abbas in 2014, another first.
Even when complying with international sanctions, it expanded ties with Iran so that it would be better
placed than any other power in a post-sanctions Iran.

2.5. 4TH INDIA-AFRICA HYDROCARBONS CONFERENCE (IAHC)

The government has organised the 4th India-Africa hydrocarbon conference on January 21-22, 2016 in New
Delhi. A total of 21 African countries participated in the event.
The Conference is aimed at greater cooperation between India and African continent towards
Development Transmitting Partnership in the field of Hydrocarbons.
The partnership would enable India to enhance its energy security while nurturing Africas Hydrocarbons
sector growth on several fronts like capacity building, environmental sustainability, human resource
development and employment generation.
IAHC aims to explore opportunities, bridge boundaries and boost bilateral trade between India and Africa.
The Conference will bring together leaders in the worlds of energy to network with other influential peers.

Hydro Carbon Sector Potential for cooperation

India hydrocarbon sector

25

Africas Hydro Carbon Sector

With per capita energy consumption less than a

third of world's average, the energy
consumption is poised to rise.
The energy consumption is estimated to double
in the next 15 years even under the most
pessimistic scenario.
Oil and gas contribute to more than a third of
the primary energy demand.
India imports more than 75% of its crude oil
and 35% of its natural gas.
At a global level, the country has emerged as
the fourth largest consumer and third largest
importer of crude oil.

There are more than 500 companies present in

Africa in the space of oil and gas exploration
today.
Africa's gas reserves are 3.5 times of
Australia's gas reserves & 2.5 times of Europe
gas reserves.
With the continent accounting for 14.5% of
current proved accessible oil reserves and
13.2% of the accessible gas reserves, Africa
plays a significant role in the global oil and gas
pool.

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2.6. FIRST INDIA ARAB MINISTERIAL CONFERENCE

The 1st Ministerial Meeting of Arab-India Cooperation Forum

was held on 24 January 2016 in the Bahraini capital Manama.
From Indian side meeting was attended by Minister of
External Affairs and Overseas Indian Affairs and foreign
ministers of Arab States also participated in this meet.
In meeting, leaders reviewed the achievements of the ArabIndian cooperation and adopted the Manama Declaration.
The Arab-Indian Co-operation Forum was launched in New
Delhi in 2008.

Key Highlights

Arab League
The Arab League is an organization that
consists of independent Arab States on
the territory of northern and northeastern part of Africa and southwest Asia.
Representatives of the first six member
states Egypt, Iraq, Jordan, Lebanon,
Syria and Saudi Arabia that initiated the
leagues formation signed the agreement
in Cairo, in March, 1945.
Presently, League has 21 members which
includes Algeria, Bahrain, Comoros,
Djibouti, Egypt, Iraq, Jordan, Kuwait,
Lebanon, Libya, Mauritania, Morocco,
Oman, Palestine, Qatar, Saudi Arabia,
Somalia, Sudan, Tunisia, United Arab
Emirates and Yemen.

A. Regional Issues

Arab Israel Conflict - A comprehensive and permanent

solution to the Arab-Israeli conflict should be achieved on the
basis of UN Security Council resolutions, Madrid Peace
conference of 1991 and the 2002 Arab Peace Initiative in
Beirut.

Syria Issue There is need to preserve the unity, sovereignty, territorial integrity and stability of Syria and
the importance to reach a political solution to the crisis that preserves the lives of Syrians.

Israel Palestine Conflict

o Israel should end its occupation of the Palestinian "Arab territories it seized in 1967 and dismantle all
the settlements.
o Conference also calls Israel to release all the Palestinian and Arab prisoners and detainees from its jails,
halt the aggressions and crimes being committed by the Israeli settlers against the civilian Palestinians.
B. Global Issues

UNSC Reforms There is a need for urgent reform of the United Nations Security Council through
expansion in both permanent and non-permanent membership to reflect contemporary reality.

Terrorism They emphasized the need for concerted regional and international efforts to combat terrorism
and to develop a strategy to eliminate the sources of terrorism and extremism including its funding, and
combating organized cross-border crime.

2.7. MAURITIUS TO EXCLUSIVELY OFFER BIO FARMING TECHNOLOGY

TO INDIA

The Mauritius government has exclusively offered to transfer bio-farming technology to India.
It is also seeking exchange of cooperation in the health sector as part of the first joint committee meeting
for cooperation in micro, small and medium enterprises.
Both governments have also agreed to formulate an action plan in the area of coir, khadi and handicraft
sectors in addition to the above areas.
Additionally, both countries have also agreed to cooperate in the fields of capacity building, surveys on
potential areas, managerial and technical skills, marketing, exhibitions and trade fairs, etc.

India Mauritius Relationship Brief Summary

Connections between India and Mauritius date back to 1730, diplomatic relations were established in 1948,
before Mauritius became independent state.
More than 68% of the Mauritian population is of Indian origin, most commonly known as Indo-Mauritians.
India and Mauritius co-operate in combating piracy, which has emerged as a major threat in the Indian Ocean
region and Mauritius supports Indias stance against terrorism.
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 India has become Mauritius largest source of imports since 2007.

Mauritius has remained the largest source of FDI for India for more than a decade with FDI equity inflows
totaling US$55.2 billion in the period April 2000 to April 2011.

2.8. WHY CRUDE OIL PRICES ARE FALLING?

For the last two years, global oil prices have been in free fall, and no one seems to know when the bungee
cord will catch. In June 2014 you had to plunk down $110 to purchase a barrel of Brent crude. By early 2015
that had dropped to $60.
Today it costs just $32 to buy a barrel of oil a
level not seen since 2004. It's a breathtaking
decline.
Reasons for steep fall in prices
o Fracking boom in USA due to Shale Gas and
Oil explorations.
o Continued high production by oil producing
countries even after supply surpassing the
demand to preserve their market shares.
o Lifting of sanctions on Iran leading to a
production boom and subsequent price fall.
Prices are expected to either rise or plateau to
a new level at the end of this year when the
Fracking boom in USA tapers.

2.9. WHAT DOES A BREXIT MEANS?

In early 2015 the chances of

Brexit Britain departing from the
European Unionseemed remote.
In January 2016, largely because of
Europes migration crisis and the
interminable euro mess, the polls
have narrowed.
Some recent surveys even find a
majority of Britons wanting to leave.
The two campaigns, "Britain Stronger
in Europe" and "Vote Leave", that are
likely to form the official lobby groups
for each side in the referendum have
set out their positions on the main
topics that will form the basis for the
referendum.

2.10. INDIA APPROVES MOU WITH BANGLADESH TO SET UP MORE

BORDER HAATS

27

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its ex-post-facto approval
for the Memorandum of Understanding (MoU) between India and Bangladesh for setting up Border Haats
on India-Bangladesh Border.

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A significant aspect of the growing India-Bangladesh ties has been the setting up of border haats (markets)
along the international border in North East.
The haats had been thriving centres of trade and commerce across the borders till the partition of the subcontinent in 1947. Studies indicate that some haats existed even in the time of Mughal rule.
The MoU was agreed in 2010 during the India visit by Bangladeshi Prime Minister.
Already four markets - Kalaichar (Meghalaya-Bangladesh border), Balat (Meghalaya-Bangladesh border),
Kamlasagar (Tripura-Bangladesh border) and Srinagar (Tripura-Bangladesh border) - are operational.
In addition, the two governments have also agreed to further establish two markets in Tripura and four in
Meghalaya on the Bangladesh border.

2.11. SRI LANKA BEGINS PROCESS TO DRAFT NEW CONSTITUTION

Sri Lankas government began the process of drawing up a new constitution for the country aimed at
eliminating causes that led to a quarter-century civil war.
A motion was introduced in Parliament to convert it into a Constitutional Assembly to draft a new
Constitution.
Features of the Draft introduced in the Parliament
o The government intends to strengthen democratic rights, promote national reconciliation and establish
a political culture that respects the rule of law.
o Once the Parliament adopts the draft Constitution Bill with two-thirds majority, the Bill will be sent to
Provincial Councils for opinion and eventually, tested through referendum for the approval of people.
o The Cabinet spokesperson claimed that for the first time [in Sri Lanka], a Constitution is going to be
framed with the consultation of people.
A survey taken by the Centre for Policy Alternatives during October-December 2015 revealed that 53.4 per
cent of Sri Lankans agreed that the Constitution should be changed to produce a political solution to the
countrys ethnic problem.
The emergence of a new order since 2015 under new President and Prime Minister provides a setting
conducive for positive change. It is a historic opportunity for all stake-holders, including Tamils, Muslims
and plantation Tamils, to participate in the process.

2.12. JAPAN-RUSSIA TERRITORIAL DISPUTE

28

Heads of both Japan and Russia in a New Years Press Summit resolved to work for resolution of the long
standing territorial dispute between then over the Kuril Islands.
Russia and Japan never signed a peace treaty after World War II because of conflicting claims over islands
north of the Japanese island of Hokkaido, which Japan calls its Northern Territories - and Russia refers to as
the Southern Kurils.
Thus, technically they are still at war, both countries have tried on numerous occasions to reach an
agreement on this issue, always without success.
Japan has on numerous occasions rejected a Russian offer to settle the dispute with the return of two out
of the four islands, namely the Habomai islets and Shikotan, since these islands comprise only 7 percent of
the total land mass in dispute.
With Abe and Russian President Vladmir Putin in power, now would seem the right time to once again push
for a resolution of this long-standing dispute.
Both nationalist leaders, Abe and Putin have a strong hold over their respective nations, share a good
rapport, and see space for their countries to work together for mutual benefit.

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2.13. INDIA TO BUILD A SATELLITE STATION IN VIETNAM

India will set up a satellite tracking and imaging centre in southern Vietnam that will give Vietnam access
to pictures from Indian earth observation satellites that cover the region, including China and the South
China Sea.
The Indian Space Research Organisation (ISRO) will fund and set up the satellite tracking and data reception
Centre in Ho Chi Minh City to monitor satellite launches.

Benefits

Earth observation satellites have agricultural, scientific and environmental applications. Information
provided by this satellite, will be helpful for Vietnam.
This will help in deepening ties between India and Vietnam.
As per the views of some analyst, this step might impact the India-China relations.
However, Chinese Foreign Ministry spokesperson, has hoped that this satellite will be able to make a
positive contribution to pushing forward relevant cooperation in the region.

2.14. AMENDMENT IN NEPAL CONSTITUTION

Background

Nepals Constitution which was promulgated in September 2015, created seven states in a secular, federal
system.
It divided the country into seven provinces.
However, after the promulgation, there were violent protests in the Terai against injustice meted out to
the Madhesis.
The protestors were upset that the federal restructuring of Nepal into seven provinces left the Madhesis
divided among five provinces, with only one of them having a majority of plains-origin people.
Delineation of electoral constituencies in the Terai (where more than 50 per cent of Nepals people live)
which has not been done on the basis of the population in the plains. This creates a grievance about
gerrymandering.
Other complaints relate to citizenship norms that disallow children of Nepali mothers married to foreigners
from inheriting Nepali citizenship.

Present Situation

Amendmentso The Constituency Delimitation Commission (Article 286) shall consider population the first priority and
geography the second while fixing 165 electoral constituencies (Article 84) as per the federal laws.
o It also covers Article 42 to ensure more inclusive social justice.
However, the amendment process did not include the main demand of the Madhesis for the creation of
two separate Madhesi provinces on the plains of Nepal.
Indias response India has described the first amendment of the Nepali Constitution as welcome
development and hoped that other outstanding issues will be similarly addressed in a constructive spirit.
Madhesis View The United Democratic Madhesi Front rejected a constitutional amendment passed by
the Parliament to resolve the ongoing political crisis.

Impact on India Nepal Relations

This move will be helpful in improving the ties between India and Nepal.
It will also pave the way for the first foreign visit of present Nepal Prime Minister to India.
Nepal also hopes that it will be helpful in resuming the supply of fuel and other essential commodities to
Nepal.

[Note- For more details please refer September 2015, current affairs.]
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2.15. NASEEM AL BAHR

India and Oman have conducted the 10th edition of bilateral maritime exercise 'Naseem Al Bahr' in the
Arabian Sea in last week of January. This exercise was first initiated in 1993.
In this exercise, Oman Navy ships RNOV Al-Shamikh and RNOV Al-Seeb have participated. The Indian Navy
was represented by INS Trikand and INS Trishul.
The exercise was conducted in two phases i.e. a) Harbour Phase at Goa b) Sea Phase off the Goa coast.
The exercise has matured over the years with increasing scope, complexity of operations and level of
participation.
The primary aim of this exercise is to increase interoperability amongst the two navies and develop
common understanding and procedures for maritime security operations.

Significance

This exercise has added another milestone in strengthening maritime security cooperation between India
and Oman.

It will also serve to reinforce the long standing bond of friendship between the two countries.

Increasing naval cooperation is a tangible symbol of the commitment of both nations towards enhancing
maritime stability.

2.16. SAUDI ARABIA OIL PREMIUM CHARGE

It refers to Saudi Arabias decision to charge a premium for the oil it sells
to Asian customers.
As per state owned oil company they would be charging Asian
customers 60 cents a barrel more.
Saudi Arabia is conventionally is one of largest exporters of crude oil to
Energy starved India.
Indian refiners will have to operate at higher input prices from Saudi
Arabia in the near term as they are likely to be bound by purchase
contracts that have been signed

Indias Oil Import scenario

India is currently the thirdlargest oil importer in the
world, relying on imports for 76
per cent of its oil needs
The International Energy Agency
projects that this would rise to
around 90 per cent by 2030 as
Indias demand continues to
increase.

Alternative to Indias energy Import Basket- AFRICA

30

To diversify its energy basket India is looking at

Africa to spruce up its oil and gas imports.
Africa is blessed with vast hydrocarbon prospects,
substantial acreage remains unexplored, giving rise
to E & P opportunities for Indian companies
Africa already contributes around 15 per cent of
Indias oil needs
Recently the 4th India-Africa Hydrocarbon Summit
was held in Delhi that included 22 African nations
where Opportunities for boosting India-Africa
trade in oil and gas was also discussed.
Last year, Nigeria overtook Saudi Arabia as the
largest contributor to Indias oil imports for a short period of time and currently remains one of the top
providers of oil to India.
Indian companies have been seeking opportunities to collaborate in the gas discovery on the eastern coast
of Africa.
Indian companies have a significant presence in Mozambique, Algeria, South Sudan, Egypt, Ghana Gabon
and Libya to name a few.
Recently, an Indian engineering company won the largest consultancy contract for an oil refinery in Nigeria.
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31

India, with the 4th largest oil refinery capacity globally, can be a suitable partner to complement Africa's
needs in this space.
India buys Urea in large quantities and can be a great destination for Africa to monetize its Gas.
With India's demand for and Africa's supply of oil expected to grow, it is possible to harness the
hydrocarbons complementarities to ensure economic development in India and Africa.

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3. ECONOMY
3.1. FOURTH INDUSTRIAL REVOLUTION

Fourth Industrial Revolution or Industry 4.0 is the theme of the 2016 annual meet of World Economic
Forum.

Meaning

It is a collective term embracing a number of contemporary

The First Industrial Revolution started in
automation, data exchange and manufacturing technologies
th
the 18 century with the use of water
and denotes a fundamental change in the way business is
and steam power to mechanize
being done in the present world.
production.
th
It is characterized by a wave of innovations and fusion of
The Second in 19 century used electric
technologies that is blurring the lines between the physical,
power to create mass production.
digital, and biological spheres.
The Third began in the 1960s and used
For example things like driverless cars, smart robotics,
electronics and information technology
tougher and lighter materials, and a manufacturing process
to automate production.
Now a Fourth Industrial Revolution is
built around 3D printing technology, internet of things and
building on the third, that is, the digital
internet of services.
revolution.
The characteristic is not just these new innovations but also
that it is changing at exponential rates and disrupting every
industry at a pace that is difficult to cope with.
New technology, increased connectivity, artificial intelligence etc. has changed the way any industry
functions, the consumer demand and the competition.
The inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on
combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way
they do business.

Challenges posed by Fourth Industrial Revolution

32

Risk
of
greater
unemployment
especially low skilled ones has
increased
Sustainability of businesses especially
small ones is under threat
Disruptions in existing industries as new
ways of serving needs are coming up.
The innovators are improving the
quality, speed and price of services at a
much faster rate due to better access to
global digital platforms for research,
development, marketing, sales, and
distribution.
Growing transparency and consumer
engagement would demand more
adaptation from the companies.
IT security issues
It also affects the governance system as
well.
o The
accountability
of
the
government has increased due to
more citizen engagement.

WORLD ECONOMIC FORUM

It is a Swiss Non-Profit foundation, based in Geneva. It is an
international institution for public-private cooperation.
Its mission is cited as "committed to improving the state of the
world by engaging business, political, academic, and other
leaders of society to shape global, regional, and industry
agendas".
Davos Panel: The annual WEF winter meet (Jan) at Davos,
Switzerland. It has different themes. e.g. 2014- "The Reshaping
of the World: Consequences for Society, Politics and Business",
2015- "New Global Context", 2016- "Mastering the Fourth
Industrial Revolution"
It was established in 1971 as 'European Management Forum'
and changed to WEF in 1987 and sought to broaden its vision to
include providing a platform for resolving international conflicts.
It also works as a think tank giving out various reports; Global
Competitiveness Report, Global IT Report, Gender Gap Report,
Risks, Travel & Tourism, Enabling Trade.

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o
o
o

At the same time governments would gain more technological powers to increase its control over
people, based on pervasive surveillance systems and the ability to control digital infrastructure.
The governments dependence on private sector would also increase.
On the whole governments will increasingly face pressure to change their current approach to public
engagement and policymaking, as their central role of conducting policy diminishes owing to new
sources of competition and the redistribution and decentralization of power that new technologies
make possible.

3.2. STARTUP INDIA PROGRAMME

Why in news

Prime Minister has announced the action plan for start-ups.

The schemes offer incentives to entrepreneurs to start ventures in India.
The Action Plan proposes a 19-point action list which will enable setting
up of incubation centres, easier patent filing, tax exemption on profits,
setting up a Rs.10,000 crore corpus fund, ease of setting-up of business, a
faster exit mechanism, among others.

Key Highlights

To encourage seed-capital investment, the government also exempted tax

above fair market value for incubators in start-ups.
With the intention of reducing regulatory burden on start-ups, they have
been exempted from six labour laws and three environmental laws for a
period of three years.
Start-ups will also be provided free legal support in filing intellectual
property rights (IPR).
Patent applications filed by startup will be fast tracked at lower costs.
To provide equal platform to startups in government procurements, the
criteria of prior experience or turnover will be exempted without any
relaxation in quality standards or technical parameters.
Government will create a policy framework for setting up of incubators
across the country in public private partnership, build innovation centres
at national institutes and set up seven new research parks.
Funding support of worth 10,000 crore rupees for next four
Criteria for a startup
years.
The firm incorporated should be less
Government to set up a Startup India Hub which will be a
than five years old.
single-point of contact for Startups.

Annual Revenue of less than Rs 25 crore.

In order to augment incubation and R&D efforts, 31 centres
Needs to get approval from interof Innovation and entrepreneurship will be setup/ scaled up
ministerial board to be eligible for tax
for providing facilities to over 1,200 Startups, at national
institutes.
benefits.
7 new research parks are proposed to be set up with an
Get recommendation from an Incubator
initial investment of Rs.100 crore each. These parks shall
recognized by government, domestic
enable companies with a research focus to set up base and
venture fund or have an Indian patent.
leverage the expertise of academic/ research institutions.

Benefits of the scheme

33

It will help in economic growth of the country.

It will create more employment opportunities in India.
It will help in development of entrepreneurship culture in India.
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Challenges

Forex regulations are a major reason for re-domiciling.

Cost of the loan is high.
Tax laws need more clarifications and simplification.
Taxes on alternative investment funds and venture capital need rationalization.
Fund set up by government is not enough to cater the needs of the all sections of the entrepreneurs; hence
it becomes very difficult for the startups to mobilize funding.

Way Forward

While the Action Plan is certainly a welcome and positive step towards the philosophy of promoting Startup
innovation in the country, it will also be important to consider tax exemptions for angel investors, seed
capital funds and stock options offered by Startups to employees.
The Government should consider providing indirect tax incentives for Startups.
There is a need to change the mindset of lenders who do not consider start-up entrepreneurs to be good
borrowers so that quick funding is available to the startups.
The easing of rules and creation of a conducive policy environment should not be restricted just to startups. It should be extended to all businesses.

3.3. STAND UP INDIA SCHEME

Why in news?

The Union Cabinet has recently approved the Stand Up India Scheme to promote entrepreneurship
among SC/ST and Women entrepreneurs.

Salient features

34

The Scheme is intended to facilitate at least two such projects per bank branch, on an average one for
each category of entrepreneur.
Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs.
10,000 crore.
Creation of a credit guarantees mechanism through the National Credit Guarantee Trustee Company
(NCGTC).
Hand holding support for borrowers both at the pre loan stage and during operations. This would include
increasing their familiarity with factoring services, registration with online platforms and e-market places as
well as sessions on best practices and problem solving.
Focus is on handholding support for both SC/ST and Women borrowers.
The overall intent of the approval is to leverage the institutional credit structure to reach out to these
under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs.
10 lakh to Rs. 100 lakh for Greenfield enterprises in the nonfarm sector set up by such SC, ST and Women
borrowers.
The loan under the scheme would be appropriately secured and backed by a credit guarantee through a
credit guarantee scheme for which Department of Financial Services would be the settler and National
Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency.
The Stand Up India Scheme anchored by Department of Financial Services (DFS).
It is expected to benefit at least 2.5 lakh borrowers.
The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the
Scheme.
Presently only 9% of start-ups in India are led by women

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3.4. PRADHAN MANTRI FASAL BEEMA YOJNA

Why in news?

On 13th January, 2016, the Govt. has launched a new crop insurance policy Pradhan Mantri Fasal Bima
Yojna (PMFBY)
It will replace two schemes National Agricultural Insurance Scheme (NAIS) and the modified NAIS (MNAIS).

Issues with earlier schemes

As per government report, under

the existing yield-based and
weather-based crop insurance
schemes about 37 million, or 27% of
farming households were covered.
Under the present crop insurance
schemes - Risks were only partially
covered.
The existing premium rates vary
between 2.5% and 3.5% for Kharif crops and 1.5% for Rabi crops but the coverage was capped, meaning
farmers could recover only a fraction of their losses.
The premium for commercial and horticulture crops was calculated on actuarial basis, which means
premiums could be as high as 25% depending on the risk factor involved.
Assessment of crop damage lacked transparency and didnt use the latest technologies.
Compensation took long, even going beyond a year in many cases.

Salient features

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is to be rolled out during the kharif crop season this year.
Schemes targets to cover half of Indias cropped area in the next three years. Present coverage is 23%
approximately.
There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi
crops.
In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the
Government.
The government liability on premium subsidy will be shared equally by the Centre and states.
Government has substantially increased the budget for crop insurance from Rs.2,823 crore in 2015-16 to
Rs.7,750 crore in 2018-19.
The new scheme will also seek to address a long-standing demand of farmers and provide farm-level
assessment for localized calamities, including hailstorms, unseasonal rains, landslides and inundation.
The use of technology will be encouraged to a great extent.
o Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim
payment to farmers.
o Remote sensing will be used to reduce the number of crop cutting experiments.
In the case of Weather-Based Crop Insurance Scheme (WBCIS), the government said premium rates would
be rationalized on par with PMFBY. The PMFBY will be effective from the April 1, 2016.

Benefits

35

With back-to-back droughts, and unseasonal rain and hail in certain pockets, it became clear that the risks
in farming are on the rise, and the existing system of crop insurance was nowhere near meeting the needs
of the peasantry.
In this context, the new scheme is surely a step in the right direction and very timely which will help in
saving Indian agriculture from the increasing risks of nature.
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The premium rates to be paid by farmers are very low and balance premium will be paid by the
Government to provide full insured amount to the farmers against crop loss on account of natural
calamities.
The low premium will drive penetration and enrolment and make the insurance scheme viable for insurers.
Post-Harvest losses are also included, so it will provide safety and confidence to the farmers.

Key issues that have been identified by farm rights groups as problematic with the PMFBY

Problems related to insurance run far deeper than premium rates. For e.g. In many states where premium
rates are low in MNAIS still have very low subscription.
The governments expectation that insurance cover will go up from existing 23% to 50% in three years
appears to be based more on hope than any evidence. Previous experience has belied all such hopes.
Subsidies are to be borne in a 50:50 ratio between Centre and State. It is unclear yet if the states have
agreed to bear their share of the subsidies
There does not seem to be anything in this scheme to address the problem of tenant farmers who bear the
risk of crop failure but are not entitled for compensation and insurance payments.
Risks such as destruction by wild animals are still not covered.
One key problem of crop loss or damage compensation, the unit of assessment, remains unaddressed in the
new scheme

Way forward

For the successful implementation of this scheme, it is important that

o Crop assessment should be done in a transparent manner and within a specified period of time, and
using high technology such as automatic weather stations (AWSs), drones and satellites etc.
o Compensation must be paid to farmers accounts directly and as quickly as possible (within a week of
assessment of crop damage) so that next agriculture cycle is not affected.
Comparison with previous schemes
NAIS
[1999]

MNAIS
[2010]

PM Crop Insurance Scheme

Premium rate

Low

High

Lower than even NAIS and government to contribute 5

times that of farmer.

One Season One

Premium

Yes

No

Yes

Insurance Amount
cover

Full

Capped

Full

On Account Payment

No

Yes

Yes

Localized Risk coverage

No

Hail storm, Land slide

Post-harvest losses
coverage

No

Coastal areas
cyclonic rain

Prevented Sowing
coverage

No

Yes

Yes

Use of Technology

No

Intended

Mandatory

Awareness

No

No

Yes (Target to double coverage to 50%)

Parameter

36

Hail storm, Land slide, Inundation

for

All India for cyclonic and unseasonal rain fall.

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3.5. SEBI PANEL SUGGESTS REFORMS TO GROW ALTERNATIVE FUNDS

INDUSTRY
Why in news?

An 21 member advisory panel under Narayan Murthy set up by SEBI has suggested a slew of tax reforms
and changes in existing laws to facilitate capital-raising by AIFs and boost entrepreneurship.

Recommendations:

Creating a favorable tax environment

o Government should introduce a securities
transaction tax (STT) on all distributions (gross) of
AIFs, investment, short-term gains and other
income and eliminate any withholding of tax.
o After STT, need for parity with the taxation of
investments in listed securities.
o AIFs and portfolio companies be exempted from
certain income tax provisions so that they are
subjected to tax only when receiving dividend or
interest income during the holding period, or
realize capital gains at the time of exit.
o The exempt income of AIFs should not be subject
to withholding tax of 10%; the exempt investors
too should not be subjected to the tax.
Unlocking domestic pools of capital:
o

o
o

Large capital pools from pensions, insurance, DFIs and banks, and charitable institutions, which
currently constitute only around 10% of the total private equity and venture capital invested in India
annually, should contribute more to develop the AIF industry.
The panel urged the regulators to increase the investment limits for banks and insurance companies in
AIFs from the current 10% to 20% of the total corpus of an AIF.
Domestic pension funds in India including the National Pension System and the Employee Provident
Fund Organization should allocate up to 3% of their assets to AIFs by 2017, rising to 5% by 2020.

Reform regulatory regime

o
o
o
o

The investment gains of AIFs should be deemed to be capital gains in nature and losses incurred by
AIFs should be available to their investors for set-off.
The central board of direct taxes should clarify that investors in the holding companies are not subject
to the indirect transfer provisions.
The panel suggested that AIFs should be allowed to invest in charitable and religious trusts also.
Eligibility norms: - Any individual with a total annual income of at least Rs.50 lakh (from 1 cr presently)
should be allowed to put money in.

What is AIF?

37

Anything alternate to traditional form of investments gets categorized as alternative investments.

(AIFs) are defined in Regulation 2(1)(b) of Securities and Exchange Board of India (Alternative Investment
Funds) Regulations, 2012
It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of
a trust or a company which are not presently covered by any Regulation of SEBI nor coming under the
direct regulation of any other sectoral regulators in India-IRDA,PFRDA, RBI
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AIFs are categorized into the following three categories:

Category I - AIF are those AIFs with positive spillover effects on the economy. Example: Venture Capital
Funds, SME Funds etc.
Category II - AIF are those AIFs for which no specific incentives or concessions are given. E.g. Private
Equity or debt fund.
Category III AIF are funds that are considered to have some potential negative externalities in certain
situations and which undertake leverage to a great extent; with a view to make short term returns. No
specific incentives or concessions from the government or any other Regulator. E.g. Hedge.

3.6. RECENT MEASURES TO BOOST SEZS

Why in news?

Export Promotion Council for export oriented units and SEZs (EPCES) have raised certain issues with respect
to SEZs.

DEMANDS OF EPCES and SEZ Developers and units:

Removal or reduction of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs
Abolition of all direct tax benefits for SEZs not operationalized before April, 2017. This Sunset Clause
(provision relating to the expiry of the benefits to SEZs) on SEZs should be extended up to 2023.
EPCES also wanted SEZ units to be allowed to sell in the domestic tariff area (DTA or domestic market) by
shelling out the same duty applicable to imports from nations who are free trade agreement (FTA) partners
of India.
SEZs are duty and tax free enclaves, they have to pay regular duties for sales in the domestic market, which
in turn makes their items costlier as compared to imports from FTA partner nations that enter India at zero
or lower than regular duties.

3.7. EASWAR PANEL

Why in news?

A committee, set up by the government to change direct tax laws,

headed by retired high court judge R.V. Easwar, has submitted its
recommendations.

Recommendations

38

Under the presumptive income

scheme,
such professionals or
businesses will not need to maintain a
book of accounts but just pay tax
based on presumptive income
calculations.
For
instance,
for
professionals it is proposed that 33.3%
of their previous years receipts will be
taken as income on which they will
have to pay tax. If their profits are
much lower, they will have to maintain
a book of accounts clearly categorizing
expenditure and pay tax accordingly.

Simplifying provisions related to tax deducted at source (TDS),

claims of expenditure for deduction from taxable income and for
tax refunds.
Several taxpayer-friendly measures to improve the ease of doing
business, reduce litigation and accelerate the resolution of tax
disputes.
Deferring the contentious Income Computation and Disclosure Standards (ICDS) provisions and making the
process of refunds faster.
Income-tax department to desist from the practice of adjusting tax demand of a taxpayer whose tax return
is under assessment against legitimate refunds due.
Deletion of a clause that allows the tax department to delay the refund due to a taxpayer beyond six
months and suggested a higher interest levy for all delays in refunds.
Stock trading gains of up to Rs.5 lakh will be treated as capital gains and not business income, a move that
could encourage more retail investments in the stock market.
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Vision IAS

TDS rates for individuals be reduced to 5% from 10%. Dividend income on which dividend distribution tax
has been levied should be treated as part of total income.
Provide an exemption to non-residents not having a Permanent Account Number (PAN), but who furnish
their Tax Identification Number (TIN), from the applicability of TDS at a higher rate.
Favored deferring ICDS.
The processes of the income-tax department should be conducted electronically to minimize human
interface.
To make it easy for small businesses, the eligibility criteria under the presumptive scheme be increased to
Rs. 2 crore from Rs. 1 crore. Launch a similar scheme for professionals. The presumptive tax is levied on an
estimated income and makes life (and work) easier for small businesses.

3.8. IMF REFORMS

Why in news

The IMF reforms came into effect on January 27

which was approved by it in 2010.
The reforms were unable to implement due to the
absence of its approval by the US Congress, which
it did last year.

Voting Rights:

ABOUT IMF:
International Monetary Fund (IMF) was
established along with the International Bank for
Reconstruction and Development at the
Conference of 44 nations held at Bretton Woods,
New Hampshire, USA in July 1944.
At present, 187 nations are members of IMF.
India is a founder member of the IMF.
The objectives of IMF is macro-economic growth,
alleviation of poverty and economic stability,
policy advice & financing for developing countries,
forum for cooperation in monetary system,
promotion of exchange rate stability and
international payment system.
India has not taken any financial assistance from
the IMF since 1993.Repayments of all the loans
taken from International Monetary Fund have
been completed on 31 May, 2000.

The emerging and developing economies gained

more influence in the governance architecture of
the International Monetary Fund (IMF).
More than six per cent of the quota shares will
shift to emerging and developing countries from
the U.S. and European countries.
Indias voting rights increase to 2.6 per cent from
the current 2.3 per cent, and Chinas, to 6 per cent
from 3.8, as per the new division.
Russia and Brazil are the other two countries that
gain from the reforms.
The reforms bring India and Brazil into the list of the top 10 members of IMF, along with the U.S, Japan,
France, Germany, Italy, the United Kingdom, China and Russia.
Canada and Saudi Arabia slip below the top ten in the process.
For the first time, four emerging market countries of the BRIC bloc Brazil, China, India, and Russia will
be among the 10 largest members of IMF.

Financial strength:

The reforms also increase the financial strength of IMF, by doubling its permanent capital resources to 477
billion special drawing rights ($659 billion).

IMFs Executive Board:

39

As part of the reforms, for the first time, the IMFs Executive Board will consist entirely of elected Executive
Directors, ending the category of appointed Executive Directors.
Currently the members with the five largest quotas appoint an Executive Director, a position that will cease
to exist.

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IMF statement:

These reforms will reinforce the credibility, effectiveness, and legitimacy of the IMF, an IMF statement said.
It also said that the conditions for implementing IMF's 14th General Quota Review, which delivers historic
and far-reaching changes to the governance and permanent capital of the Fund, have now been satisfied.
Following the effectiveness of the 14th General Review of Quotas, the focus will now turn to work on the
15th General Review of Quotas and securing the necessary broad consensus, including on a new quota
formula.

3.9. IMF CUTS GLOBAL GROWTH FORECAST AS CHINA SLOWS

What is the news?

International Monetary Fund (IMF) cut its

global growth forecasts for the third time in
less than a year on Tuesday

Key Observations:

World economy would grow at 3.4 per cent in

2016 and 3.6 per cent in 2017, both years down
0.2 percentage points from the previous
estimates made in October15.
India and the rest of emerging Asia are
projected to grow at a robust pace with growth
forecast for India in 2016-17 unchanged at 7.5
per cent.
IMF cited a sharp slowdown in China trade and
weak commodity prices that are hammering
Brazil and other emerging markets.
Plummeting oil prices and no hope for rise in
near future.
Near-term fiscal policy should be more
supportive of the recovery, especially through
investments that would augment future
productive capital.

3.10. INDEX OF INDUSTRIAL PRODUCTION

Why in news?

Industrial production, measured by IIP, dropped for the month of November after a robust recovery till
October.
According to India Rating and Research, the drop is due to wide base and slowdown in various sectors
globally.
The agency emphasized that drop in numbers does not imply end of industrial recovery.

What is IIP

40

IIP is a ratio which measures the growth of various sectors in the economy. Being a ratio, it represents the
status of production in the industrial sector for a given period of time as compared to the reference period
of time (base year).
IIP data is released every month by CSO.
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The current base year is 2004-05.

Composition of IIP

The IIP comprises of 682 individual items. Sector wise, the items included falls into 3 categories viz.
Manufacturing, Mining and Electricity respectively in decreasing order of their weightage to the index.

Weightage of Core Industries in IIP

In terms of percentage, the weightage of all 8 core industries in IIP is around 38%.
In IIP, the decreasing order of core industries among them is as:
ELECTRICITY> STEEL> REFINERY PRODUCTS> CRUDE> COAL> CEMENT> NATURAL GAS> FERTILIZERS

3.11. SCOPE OF DBT TO BE ENLARGED BY BOTH CENTRE AND STATES

Centre to implement direct transfer of kerosene subsidy through DBT.

The scheme would be to incentivize states, by granting 75% saved subsidy cash in first two years; 50 % in
3rd year and 25 % in 4th year.
Eight states have agreed to implement the scheme in some districts on pilot basis.
State government planning to roll out welfare pensions through DBT route, due to alleged lapses in
disbursement through postal system.
Under the scheme, the consumer would be required to purchase the kerosene at market price. The subsidy
amount will then be transferred to their bank account.

Benefits of kerosene subsidy through DBT

Containment of current leakages

Improved targeting
Curtail corruption and promotes transparency in distribution
Paying at market price would give consumers a sense of
ethical consumption of kerosene, even though they will be
subsidized through bank transfer.

Bottlenecks in kerosene subsidy through DBT

Present system of distributing kerosene

subsidy

For now, centre allocates a fix amount of

kerosene to the respective state and
union territory for consumption at a
subsidized rate.
The state in turn, distribute the kerosene
through state administered fair price
shops

Determination of the quantum of subsidy, each household is

eligible for would be a complex task.
Targeting Identification of beneficiary (inclusion and exclusion errors).
Highly subsidized kerosene would leave little scope for cleaner form of energy like solar energy to be
promoted.
Downsizing subsidy in future would become a political populist agenda.

3.12. GLOBAL TALENT COMPETITIVENESS INDEX

41

Global Talent Competitiveness Index (GTC) is released by INSEAD business school in partnership with
Adecco Group and the Human Capital Leadership Institute of Singapore.
The index that measures a nation's competitiveness based on the quality of talent it can produce, attract
and retain.
Reflecting an acute shortage of skilled labour force and difficult business conditions, India has slipped 11
places to rank 89th on a global index of talent competitiveness, a list which has been topped by
Switzerland.
India and China remain a net exporter of talent and many emerging countries that have invested in higher
education have neglected vocational education.
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China and India fail to attract talent from abroad, particularly in the context of large emigration rates of
high-skilled people in the past.
Mobility is the key to talent development and creative talent cannot be developed if international mobility
and 'brain circulation' are not encouraged.
200 million people are unemployed and about 1 in 2 jobs are at risk due to automation.

3.13. CSR IN INDIA

Why in news?

Its now been over a year since Section 135 of the Companies Act 2013 came into effect and it has sought to
alter the way corporate social responsibility (CSR) is approached in India.

Provisions of CSR in India

Under the Companies Act, 2013 companies has to spend at least 2% of last 3 years average net profits on
CSR activities.
The Act also urges companies to leverage their business acumen and core competencies to address social
issues in the same manner as they would carry out other business operations.
The Companies Act 2013 allows for collaboration between two or more companies by using a separate legal
entity.
However, rules do not provide any provision for monitoring and any punitive actions for the companies who
fail to meet the CSR guidelines.

Salient Points

CSR budgets have grown exponentially.

Promoting education and eradicating poverty received the
maximum funds last year through CSR funding.
The next highest recipient of CSR funds was environmental
sustainability with 57 companies spending Rs.683.07 crore.
Energy companies spent the highest on corporate social
responsibility (CSR) initiatives last year.
According to data collected from the annual reports of 85
publicly traded companies by NextGen, the energy sector was
followed by financial services and IT when it came to firms that
committed to CSR.
Consumer goods companies were the only companies that
exceeded the mandatory spending limit of 2% of annual profits. The telecom sector spent only Rs.51 crore,
while it was expected to spend Rs.194 crore.
Most companies that have implemented social engagement strategies have not looked at their CSR
strategies through the same lens as their core business
The six areas have failed to attract
functions.

Challenges faced by companies

42

Lack of clarity about regulations with respect to what is allowed

under the law,
Lack of knowledge about sector and industry best practices,
Few implementation partners who have the capacity to work
with companies.
A clear challenge in the first year of the new CSR rules
implementation is impact assessment.
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significant interest.
Slum development.
Technology incubators at academic
institutions.
Promotion of rural as well as
Paralympic and Olympic sports.
The Prime Ministers Relief Fund.
Preservation of national heritage, art
and culture.
Welfare of armed forces veterans and
war widows.

Vision IAS

Way Forward

The government should leverage the CSR law to meaningfully engage companies in the development
sector.
Create frameworks that facilitate public-private partnerships for the implementation of long-term and
impactful programmes.
Impact Assessment should be encouraged to understand the success of programmes and initiatives.
The CSR law will be a lost opportunity if stakeholders do not understand each others perspectives, leverage
each others core competencies, and build capacity to deliver and create the right frameworks for
knowledge sharing and collaboration.

3.14. DEVALUATION OF CHINESE YUAN

Why in news?

The Yuan is hovering at a four-and-a-half-year low,

down over 4% against the dollar since the beginning
of the year 2015.
The recent devaluation of Chinese currency yuan has
triggered a global financial turmoil hurting stock and
currency markets worldwide.
The weakening of the yuan could lead to competitive
devaluation of Asian and Emerging Market (EM)
currencies.

Factors which caused devaluation of Yuan:

Slowdown in Chinese economy.

A lot of surplus production in China.
To make Chinese economy more competitive.
To retain international Investment in China.

Impact of Devaluation on China

By devaluing its currency, China gains an advantage in global trade. Its exports become cheaper, and more
attractive, to foreign buyers.
The yuan depreciation will make imports in China more expensive, depressing demand, especially for
commodities. This will put further downward pressure on commodity prices.

Impact of Devaluation on Indian Economy

43

Indian imports will be badly hit. This is also evident by the fact that Indias exports have plunged for 12
consecutive months, down 17.6% year-to-date because of anemic growth in developed and Asian
economies.
Decline in import will increase the Current Account Deficit (CAD).
Around 12% of Indias imports come from China as of 2015. Any increase in Chinese competitiveness
including through the Yuan depreciation could lead to a surge in such imports.
This will lead to replacing imports from other trade partners of India by increasing Chinese imports and it
could also impact these industries(such as electrical and electronics, organic chemicals, fertilizers and iron
and steel etc.) in India.
RBI will need to let the rupee decline against the dollar. This would put firms with exposure to external
commercial borrowings in a difficult situation as their loan cost will increase.

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Impact of Devaluation on World Economy

The devaluation of Yuan is bound to affect the exports of several major countries across the world.
A weaker Yuan may drive the global economy closer to a recession because the purchasing power of China
deteriorates every time the currency is devalued.
The devaluation also affects demand for commodities and imported goods, undercutting oil and other
industrial commodities. This would in turn hurt EM economies like Chile and Brazil that depend on China to
buy the copper and oil that they export.
It would also hurt developed nations like Germany, which see China as a key growth market.
This could also start a currency war as countries race to protect their exporters by devaluing in turn.
The sharp fall in Yuan has also raised fears of cheaper Chinese goods hurting the sales of domestically
manufactured products in many countries.

Can India also devalue Indian Rupee?

Devaluation of Rupee to increase Indias exports cannot be taken as a counter-measure because India is not
a supply-surplus economy.
Also, with respect to China, we import around $60 billion and export is around $12 billion so it will further
widen the trade deficit.

Way Forward

In short term, Imposing import duty on Chinese products This will help in protecting labour intensive
sectors like textiles, steel, gems and jewellery etc. which are vulnerable to cheap imports.
In long term
o Labour reforms to encourage new business to set up.
o Simplified tax structure implementation of Goods and Services Tax.
o Easy Compliance Process.
o Single window clearance.
o Availability of capital to MSMEs.

3.15. SEED FUNDING TAX TO BE REMOVED

Why in News?
Recently, government has decided to scrap the tax on seed funding
by angel investors, which has been identified as a major impediment
for entrepreneurs to get domestic funds.
Need

Finance Act 2013, introduced a tax on seed capital provided to

start-ups by local angel investors.
India is the only country in the world to penalize local angel
investors in such a manner.
The existing tax norms view the funding as income, which takes away nearly 30 percent of the value of
investments, so this would improve cash flow a lot.

Benefits

44

It will help in easing up the process to start up and doing business in the country.
According to certain estimates around 65 percent of the startups have moved out of India due to uncertain
taxation. This move is aimed at preventing the exodus of startups from the country due to difficulties in
doing business.
It will also help in ensuring transparency, simplification and predictability in tax structure.
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It will improve the cash flow for the startups which will help them in their initial setup.
It will encourage the local angel investors to invest in startups. Presently, 90 per cent of Indian start-ups are
financed by foreign venture capital and angel funds.
It will also ensure equal treatment of local investors with respect to foreign investors.

What is Seed Funding (Capital)?

It is the initial capital used to start a business. It is provided to help a business develop an idea, create the
first product, and market the product for the first time.
Seed capital is needed to get most businesses off the ground. It is considered a high-risk investment, but
one that can reap major rewards if the company becomes a growth enterprise.

Who is angel investor?

An angel investor or angel is an affluent individual who provides capital for a business start-up, usually in
exchange for convertible debt or ownership equity.

3.16. RAIL REGULATOR TO SET FARES, ENSURE FAIR COMPETITION

A concept paper, published by the Union government

has proposed to set up a rail regulator i.e. Rail
Development Authority of India
It will be fixing fares and ensuring level-playing field
for private investments in railway infrastructure.
An appellate body is also proposed to be formed and
the role, structure and composition of the body will
be similar to regulators in telecom and electricity
sectors.
At present, the tariff is set by the Union government.
As per provisional estimate, Railways losses will
touch over Rs 30,000 crore in 2015-16 and the
primarily reasons for this is due to sharp increases in input costs and no proportionate increase in fares over
the same period.

Proposed Mandate

To set passenger and freight tariff.

Ensure fair play and level-playing field for private investors in Railways.
Maintain efficiency and performance standards.
Disseminate information such as statistics and forecasts related to the sector.

Benefits of proposed rail regulator

It will help in better functioning of Railways.

It will help Railways in recovering their losses which in turn will make it economically viable.
It will also attract more private investment in Railways and will help in utilizing the full potential of Railways.

Previous Year Question

GS Paper -2 Mains -2014 - The setting up of a Rail Tariff Authority to regulate fares will subject the cash
strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services.
Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit
the consumers, the Indian Railways or the private container operators.

45

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3.17. SPACEX: SPACE START UPS

SpaceX, the company run and founded by Tesla Motors Elon Musk, has successfully completed a vertical
take-off and vertical landing (VTVL) with its Falcon 9 rocket after delivering a payload of commercial
satellites, setting a new landmark in space travel technology.
The fact that Falcon 9 was able to go into space, launch its commercial payload and then return to Earth is
great news for SpaceX as it will bring down operational costs for the company. Space X has proved that its
rockets can be refurbished and re-flown for commercial purposes.
The SpaceX feat is important, given that this is the first time that an orbital rocket has come back to Earth
intact. The rocket reached a height of approximately 200 kms before it landed back on earth, and it is this
high altitude which made the companys mission so difficult.
The feat by SpaceX is expected to fuel competition for entry of private commercial platforms in space
application.

3.18. OXFAM REPORT ON INEQUALITY

The anti-poverty charity Oxfam International gave report titled An Economy for the 1%

Salient points in report

Since 2000 the poorest half of world population has received just 1% of the total increase in global wealth,
while 50% increase has gone to top 1%.
Total wealth of 62 individuals = wealth of 3.6 billion individuals
According to a World Bank forecast, if pro-poor growth moves are not visible soon, by 2030, almost half-abillion people will still live in extreme poverty.
Inequality poses a threat to economic expansion and social cohesion around the world.

Suggestions in the report to reduce inequality:

Check the influence of the very rich and to empower people who are currently excluded from the power
structure
For workers, they suggest increasing minimum wages towards living wages, promoting transparency on pay
ratios and protecting workers rights to unionize and strike.
End of tax havens, describing them as unjust and a legal means that allowed the rich to remain rich,
estimating that tax havens help the rich hide $7.6 trillion.
Governments should work towards creating a worldwide tax transparency system

3.19. MEDIUM TERM DEBT MANAGEMENT STRATEGY

Why in news?

The government of India has put MTDS in public domain for a period of three years (2015-18).
The plan aimed at lowering cost of borrowings and expanding the list of eligible investors which would
deepen the local sovereign bond market.

What is MTDS?

46

Medium-Term Debt Management Strategy is a framework that the government intends to use over the
medium-term to ensure
o Debt levels stay affordable and sustainable,
o New borrowings are for a good purpose and that the costs and risks of borrowing are minimized.
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MTDS covers both external and internal debts including portfolio of government guarantees and contingent
liabilities
Reserve Bank of India act as the manager of govt. debt

3.20. CONVERSION OF MUDRA INTO BANK

Why in new?

The govt. approved the conversion of MUDRA ltd into MUDRA Bank as a wholly owned subsidiary of Small
Industries Development Bank of India (SIDBI) and creation of a Credit Guarantee fund for MUDRA loans.

Objective for creation of credit guarantee fund

The CGF has been created to reduce the credit risk of MFIs/Banks/NBFCs/other financial intermediaries
associated in disbursing loans to Micro and Small units. MFIs can now become Member Lending Institutions
(MLI) with MUDRA (SIDBI) Bank for refinance or with NCGTC for credit guarantee.

3.21. HORTICULTURE STATISTICS

Why in News?

Horticulture statistics releases for the first time by Agriculture ministry, pointed out a shift of farmers more
towards horticulture crops than food grains.

Important data of the survey

Area under horticulture rose by 18% , whereas, it is 5% for food grains

Fruits and Vegetables accounts for 90% horticulture production of India.
The inception to shift towards horticulture started from 2012-13, when horticulture production surpassed
the food grain production.
Area under horticulture crops rose by 2.7% per annum, and production by 7% annually.
Highest annual production growth of 9.5 per cent recorded by fruits especially citrus.
Highest intake of vegetables and fruits is in urban areas as compared to rural areas.
Grapes occupies the top position in terms of export over other horticulture fruits.

Following states are the leading producers of horticulture specific crops:

1.
2.
3.
4.
5.

Fruits
Vegetables:
Flowers:
Spices:
Plantation crops:

Maharashtra
West Bengal
Tamil Nadu
Gujarat
Tamil Nadu

Importance of survey

47

It would be helpful in formulating progressive policies towards the stakeholders.

Dissemination of data would be helpful in averting the situations of surplus and deficit production which
are frequently exploited by speculators and middlemen.

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4. SOCIAL ISSUES
4.1. NATIONAL FAMILY HEALTH SURVEY
Why in News?

The first set of the Fourth National Family Health Survey Report was released in early 2016. It covers data
for only 13 states.

What is the National Family Health Survey?

It is a large scale household sample survey conducted in a representative sample of households in India
under the stewardship of Ministry of Health and Family Welfare.
It is the main source of detailed health statistics in India.
Background
The first round of NFHS Survey took place in 1992-93. Three surveys have been conducted so far, third
being in 2005-06.
The International Institute for Population Sciences (IIPS) Mumbai, is the nodal agency for the survey.

HIGHLIGHTS OF THE FOURTH SURVEY

48

States Covered: The 13 states covered are Andhra Pradesh, Goa, Bihar, Haryana, Karnataka, Madhya
Pradesh, Meghalaya, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand and West Bengal plus Union
Territories of Andaman and Nicobar Islands and Puducherry.
Infant Mortality
o Infant Mortality has reduced in all the states and Union Territories covered. All states have below 51
deaths per thousand births.
o But it varies from 10 in Andaman to 51 in Madhya Pradesh.
Sex Ratio and Female Literacy
o Nine out of eleven states showed a declining sex ratio. These states are Goa, Meghalaya, UK, Tripura,
TN, Sikkim, MP, Karnataka, Haryana, Bihar, and WB.
o Only Uttarakhand saw its sex ratio rise. Meghalaya saw it stabilize.
o Womens literacy has risen in all these eleven states. It has increased by 12.5% in all these states since
the last survey.
o Goa tops the list in womens literacy rate with 89% literacy rate.
Fertility Rate
o Women are having fewer children - FR varies from 1.2 in Sikkim to 3.4 in Bihar.
o All First Phase States/UTs except Bihar, Madhya Pradesh and Meghalaya have either achieved or
maintained replacement level of fertility
Institutional Deliveries
o Children delivered in a medical institution under supervision increased by 32%.
o In Bihar, it rose to three-fold, Haryana and MP also showed substantial increase.
Immunisation
o Full immunization coverage among children age 12-23 months varies widely
o 6 out of 10 children have received full immunization in 12 of the 15 States/ UTs.
o Coverage of full immunization among children has increased substantially in the States of Bihar, MP,
Goa, Sikkim, West Bengal and Meghalaya.
Nutrition
o Fewer children under five years of age are now found to be stunted, showing intake of improved
nutrition.
o But in Bihar, MP and Meghalaya more than 40% of children are stunted.
o Anaemia has also declined, but still remains widespread. More than half of children are anaemic in ten
of the 15 States/UTs.

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Each state with the exception of Puducherry showed a sharp rise in obesity levels in both men and
women.
Water and Sanitation
o Indian families in the First Phase households are now more inclined to use improved water and
sanitation facilities.
o Over two-thirds of households in every State/Union Territory have access to an improved source of
drinking water.
o More than 50% of households have access to improved sanitation facilities in all First Phase States/UTs
except Bihar and MP.
Stress: Since the last survey the number of people suffering from hypertension is more in rural India than in
Urban India.
Child Marriages
o Child marriages saw a reduction since the last survey in the eleven states.
o It has reduced by 13.17 % for females and 6.7% for males.
Awareness of HIV
o Awareness about HIV/ AIDS among women has been reducing substantially.
o The percentage of women with comprehensive knowledge of HIV/AIDS in MP declined from 20.3% to
18.1%.
o Similarly, in Bihar, it decreased from 11.7% to 10.1%.
Womens Empowerment
o Marked increase in the percentage of women in the age group of 15-49 years having a savings account
that they use themselves.
o Goa at 82.8% has the maximum number of women who manage their own finances. But Tamil Nadu has
shown a 83% increase from previous survey.
o Bihar tops the list of women owning property with women owning up to 58% property while West
Bengal has the least number of women owning property.

4.2. JALLIKATTU BAN

Why in news?

The Indian Supreme Court has put on hold a recent government order
lifting a ban on Jallikattu, a form of bullfighting which has been
popular for centuries in the state of Tamil Nadu.

Background

49

Animal activists have protested against the practice over the years.
The Animal Welfare Board of India filed a case in the Supreme Court
of India for an outright ban on Jallikattu because of the cruelty to
animals and the threat to public safety involved.
On 27 November 2010, the Supreme Court permitted the Government
of Tamil Nadu to allow Jallikattu for five months in a year.
The Ministry of Environment and Forests issued a notification in 2011
banning the event
But the practice continued to be held under Tamil Nadu Regulation of
Jallikattu Act, 2009.
On 7 May 2014, the Supreme Court of India struck down the state law
and banned Jallikattu altogether under The Prevention of Cruelty to
Animals Act, 1960.
On 8 January 2016, the Ministry of Environment and Forests
permitted the continuation of the tradition under certain conditions,
effectively ending the ban.
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What is Jallikattu?
Jallikattu is a bull-vaulting event
practised in Tamil Nadu as a
part of Pongal celebrations on
Mattu Pongal day.
Participants tackle the bull in an
arena by its hump and try to
hang on till they cross the
finishing line.
Jallikattu is popular in the
districts
of
Madurai,
Tiruchirappalli,
Theni,
Pudukkottai and Dindigul a
region also known as the
Jallikattu belt.
Jallikattu is an ancient sport.
The seals of the Indus Valley
civilisation depict it. Also
Sangam literature (2nd BCE
2nd CE), has many detailed
references to Eru Thazhuvuthal
(hugging the bull).

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The Supreme Court of India on 12 January 2016 ordered a stay on grounds of cruelty to animals, issued
notices to the central government and Tamil Nadu Government and later refused to lift the stay.

Arguments in favour of banning

It is a cruel sport. In order to infuriate the bulls, they are beaten, and are made to pass through a narrow
passage.
During the process, both bulls and players suffer injuries. Few deaths also occurred in this bull taming sport.
In few cases bulls were forced to drink alcohol, werent given food & water etc.
By virtue of being an old tradition it cannot be regarded as a right sport. For example there were wrong
practices like sati, untouchability etc. in our culture.
Supreme Court during its hearing stated that cruelty should not be permitted in the name of culture. It also
stated that if culture is at variance with law, law will take precedence.
The Constitution of India says that it shall be the fundamental duty of every citizen of India to protect
wildlife and to have compassion for all living creatures. Jallikattu, bull races and bull fights goes against this
constitutional requirement of all Indian citizens and contravenes the PCA Act.
Similar kind of event of bull fighting which is organized in Spain, has been banned in Catalonia State in year
2012.

Arguments against banning

Its a part of Tamil culture and has a centuries old history.

There are rules in Jallikattu community to not harm the bulls. But some people are breaking the rules. Ban
cannot be imposed just because of some rule breakers.
Because of the ban, many bulls were sent to slaughter houses with the lack of money to maintain them.
While conducting Jallikattu, medical teams check the bulls before allowing them to participate in the sport.
Under the Convention on Biological Diversity and heritage status practices worldwide, it is customary that
these ancient traditional practices are left as they are but with rules to organise and regulate them.
If jallikattu is banned, livestock keepers will be forced to abandon the raising of native livestock, which
already stands threatened due to the extensive use of motor pumps, tractors and mechanised agriculture.
We will not only lose our breeds but also our self-sufficiency in milk production as well as promotion of
organic farming. If we lose our breeds and import foreign breeds, multinational commercial companies will
dominate the dairy industry in India.
People who want a ban on jallikattu are far removed from village life and do not know how this chain
works.

Way forward

There is a clash of worldviews, and the disagreement reflects the absence of an inclusive approach to the
problem. Animals definitely have the right to be treated in a humane way at the same time culture and
tradition also must be respected.

4.3. NEED FOR SPECIAL LAW FOR CHILD RAPE (FAILURE OF POSCO)
Why in News?

50

In 2015 Madras HC suggested the centre for considering castrating child sexual abusers while dismissing a
petition filed by a UK national seeking to quash sex abuse proceeding against him
Consequently SC in 2016 while hearing a petition filed by the Supreme Court women lawyers association
advised Parliament to consider a law for harsher punishment for such crimes.

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Child rapes in India:

National Crimes Record Bureau statistics state that a total of

48,338 child rape cases were recorded from 2001 to 2011.
India saw an increase of 336% of child rape cases from 2,113 cases
in 2001 to 7,112 cases in 2011.
These are only the tip of the iceberg as the large majority of child
rape cases are not reported to the police while children regularly
become victims of other forms of sexual assault too.
It is known that about nine of 10 rapes and sexual assaults are
carried out by people known to the victim.
The insensitivity and unhelpful attitude of police, lawyers and
untrained hospital staff makes prosecution and conviction difficult.

Why Child rapes are increasing?

A rise in reporting:
o Reporting of child abuse and rape cases have increased due to
the lowering of the stigma attached.
o The rise of social media has created awareness about child
abuse.
o Many instances of celebrities opening up about being abused
in their childhood (for instance, the actor Kalki Koechin) have
also motivated many parents to report.

New criminal laws:

o
o
o

The introduction of POCSO in 2012 and the Criminal Law (Amendment) Act in 2013 was instrumental in
higher reporting of rape against children.
The definition of rape now includes many more sexual actions than were earlier classified as sexual
assault.
Age of consent for girls has been raised from 16 to 18 years. This means boys who have consensual sex
can be charged with rape.

4.4. RESERVATIONS FOR WOMEN IN BIHAR GOVERNMENT JOBS

What is the new move all about?

Bihar government introduced 35% reservations for women in the state government jobs in Bihar at all
levels for which direct recruitment is made, in early 2016.

Similar Initiatives in Bihar in the past

50% reservations for women in panchayat and local body polls in 2006.
50% reservations for women as primary school teachers.
35% reservations for women for the job of police constables and Sub Inspectors.

Why is it needed?

51

The labour rate participation of women of working age in Bihar is 9% , which is one of the lowest in India,
with the all India average being 33%.
Share of women in casual employment in Bihar amount to 50% as against the national average of 31%. This
is evidence of gender disparity.
Better representation in the formal work force with assured wages and incomes will help improve status of
women.
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Female literacy in the largely agricultural state stands at 51.5 percent against male literacy of 71.2 percent,
and a national female literacy rate of 65 percent.

Criticism

Not too many jobs get created in public sector so this policy is mostly symbolic.
Way Forward
Government should ensure effective implementation of the policy.
Government should ensure work environments are women friendly and free of patriarchal attitudes with
stronger Sexual Harassment laws at Work place.
Resolve the gender gap in literacy levels of women for more substantial empowerment.
Supplement such policies with maternity leave benefits and crche facilities.

4.5. PATERNITY LEAVE AND MATERNITY ENTITLEMENTS

Paternity leave

Paternity leave, along the lines of maternity leave, is the paid or unpaid
leave given to male employees when they become a parent.
This is a benefit enjoyed by employees in several western countries for long
and is increasingly becoming a demand and topic of discussion in India too.

Background

Why in News?
Labour Ministry is to
increase maternity leave in
the private sector from 12
weeks to 26.
Meanwhile the issue of
paternity leave in the
private sector continues to
be ignored.

Public sector grants 15 days of paternity leave while there is no law on

paternity leave in the private sector in India.
At least 78 countries provide this provision to their male Employees in varying degrees.

Importance

Involvement of both parents becomes crucial in the wake of increasing number of nuclear families.
Would lead to changes in the relationship and perception of parenting roles.
Would lead to a gender balanced approach towards care giving and unpaid work.
May reduce women taking career break due to pregnancy.
Gives men an opportunity to develop a stronger bond with the child from birth.

Challenges for paternity leave

No standard policy in the private sector in India.

Lack of awareness and understanding of the importance of paternity leave.
Could be misused by the employees
Embarrassment associated with availing paternity leave for men.

Maternity entitlements provisions

52

The increase maternity leave from 12 weeks to 26 weeks is being done in private sector in consideration of
the six months of exclusive breastfeeding required for a childs well-being.
It would put India in a league of just 16 countries across the globe that give women the highest duration of
paid maternity leave.
Women employed in government jobs in India get a six-month maternity leave as per the Central Civil
Service Rules 1972.
Women government employees are allowed to take childcare leave of up to two years in phases at any
point till their child turns 18 years old.

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4.6. HUMAN DEVELOPMENT REPORT 2015

The latest Human Development Report, 2015 was released in

December 2015 by UNDP.

Background

Human Development Report was first launched in the year 1990 by

the United Nations Development Programme (UNDP).
This approach was developed by economist Mahbub Ul Haq and
Nobel Laureate Amartya Sen.
HDR was a result of change in thinking from monetary indicators of
national progress (like GDP) to broader indicators of human progress
like health and education.

What is Human Development

Report?
An annual milestone published by
the
UNDP
which
includes
discussions of major development
issues, trends and policies in the
world.
Also provides an annual ranking of
countries based on the Human
Development Index.

Three dimensions of Human Development

First is Standard of Living which is calculated though the Gross National Income Per Capita.
Second is Health which is calculated through Life Expectancy at Birth.
Third is Education which is calculated through mean years of education among the adult population and
expected years of schooling for children.

HDR also includes four other indices,

Inequality Adjusted HDI: It calculates the HDI after taking account of the inequality prevalent in the
country.
Gender Development Index: It compares female and male HDI values.
Gender Inequality Index: Presents a composite measure of gender inequality using three dimensions:
reproductive health, empowerment and the labour market.
Multidimensional Poverty Index: Measures non income dimensions of poverty.

Highlights of the 2015 Human Development Report

53

The report studies 188 countries and territories of the world.

Explores WORK as the one fundamental factor which increases or decreases human capability.
It differentiates between work and job. While work is not necessarily always rewarded, a job is work
done for a predetermined payment. Difference in their monetary evaluation causes widening inequality.
Norway has ranked first with an HDI value of 0.944.
Norway is followed by Australia, Switzerland and Denmark.
United States ranks 8th while China ranks 90th.
Pakistan and Bangladesh have a rank of 147 and 142 respectively.
Sri Lanka ranks a very high of 73 and falls in the ambit of High HDI countries.
India ranks lower than countries like Namibia, Tajikistan, Guatemala and even Iraq.

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India

HDI: India ranks 130th with an HDI value of 0.609 and falls in category of Medium Developed Countries,
while the very high human development countries have an average value of 0.896
Health: Indias Life Expectancy at Birth is 68 years while the very high human development countries have
an average of 80.5 years.
Education: Indias expected years of schooling are 11.7 years while the very high human development
countries have an average of 16.4 years.
Indias Mean years of schooling is 5.4 years while the very high human development countries have an
average of 11.8 years.
Progress: From 2009 to 2014 India has risen six points in terms of HDI value.
Indias improved ranking is not through improvements in education and health but mainly through income
growth.

Inequality: When Indias HDI is adjusted for inequality its value drops 28%, from 0.609 to 0.435. This trend
is similar for neighbours, Pakistan and Bangladesh also.
Gender: Indias Gender Development Index Value is 0.795 and India ranks below Bangladesh (0.917).
Indias Gender Inequality Index value is 0.563 ranking 130 among 155 countries falling behind Bangladesh
and Pakistan.
Multidimensional Poverty Index: 55.3 per cent of Indias population were multi-dimensionally poor in
2005-06, while another 18.2 per cent lived near multidimensional poverty.
Maternal Mortality Rate for India is 190 (deaths per 100000 live births) while the very high human
development countries have an average of 18.
Infant Mortality Rate for India in 2013 is 41.4 (per 1000 live births) while the very high human development
countries have an average of 5.1.

Comparability of HDR 2015 with its Earlier Versions

The 2015 report uses 2011 published PPP data while previous reports used 2005 data making comparisons
with previous rankings misleading
This report also uses new population data released by UN Population Division. This has impacted the
rankings of countries.

Way Forward

India needs to address the deficiencies in terms of malnutrition, access and quality of education.
Ensure work is quantitatively and qualitatively enhanced for a higher standard of living.
Employment guarantee schemes not enough, need to reform rigid labour market and its obsolete laws,
address child labour and forced labour, wage equality.

4.7. DISABILITY IN INDIA

Why in News?

Definition of Disability in India

PM Narendra Modi made a suggestion of changing the

nomenclature of disabled from viklang to divyang.
Several disabled peoples organizations have opposed the
use of the term divyang.

Government Initiatives for the Disabled in India

Persons with Disability Act, 1995 defines

Disability under seven categories: blindness, low
vision, leprosy-cured, hearing impairment, loco
motor disability, mental retardation and mental
illness.
2001 Census says 2.21% are disabled in India.

Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.
India signed the UN Convention on Rights of Persons with Disability.
term "divyang" is being considered in place of "viklang" to change mindset
the term would help in raising self-confidence and subsequent empowerment

54

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Critique of Divyang

Mere change of terminology is not going to bring about any change in the manner in which people with
disabilities are treated.
It will only invoke sympathy and underline that charity is what is needed
disability is not a divine gift and would only tend to create myths

Issues around Disability in India

Disability is not being measured properly in India.

o Not all censuses in India have measured Disability.
o The ones that have measured have used different definitions for disability making comparisons difficult.
o Changes in definition makes someone disabled in one census and not disabled in another.
India looks at disability from medical or pathological angle only.
Most developed countries look from social angle, highlighting institutional and social arrangements
preventing those with impairments from leading normal lives.
Census depends on self-reporting of disability; this may leave out mental disability and even physical
disability.
Lack of Institutional and Infrastructural Support for the disabled in India.

Way Forward

Kerala became first state to conduct a census of its own called Kerala Disability Census for 2014-15. Other
states must follow example.
The new Rights of Persons with Disability proposes to increase job reservations for the disabled from 3
percent to 5 percent.
It also seeks to widen scope of disabilities covered under the bill from seven to nineteen.
Accessibility and support services for persons with disability must be increased manifold.

4.8. DALIT CAPITALISM

What is Dalit Capitalism?

Why in News

A term being increasingly used by the Indian media to refer to

the use of entrepreneurship by the Dalit community in India as a
way of upward economic and social mobility.
The central idea is money as the ultimate equalizer. Using
capitalism as a way of obliterating the disadvantages imposed
by caste.

In a speech at the National Conference of

Dalit Entrepreneurs in December 2015,
PM Narendra Modi spoke about the
importance of rapid industrialisation as
the best bet for social advancement.

Background

55

The Dalit Indian Chamber of Commerce and Industry (DCCI) was founded in 2005 along the lines of FICCI in
2005.
The DICCI is an association of entrepreneurs from the Scheduled Castes and Scheduled Tribes
It promotes business enterprises for Dalits in India and has the self-purported goal of being job givers
rather than job seekers.
They reject reservations by the government as a way of dalit emancipation and feel it has just added
negative stereotype on the dalits.
Kalpana Saroj and Milind Kamble, two Dalit billionaires, were awarded the Padma Awards in 2013. They are
also members of DICCI.
In 2013 DICCI also launched the DICCI SME fund which is a venture capital fund with a aim to raise Rs 500
crore over 10 years.

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Why is Dalit Capitalism Needed?

The condition of dalits bettered only marginally and data from the Economic Census show that as late as
2005, Scheduled Casted owned just 9.8 percent of the 42 million enterprises that employ around 99 million
people, while they have a share of 16.4 percent in the population.
National share of enterprises owned by SCs in 2005 was virtually the same as was in the year 1990.

Hurdles Faced by Dalit Capitalism

Caste based discrimination still practiced in India even in the free market.
Lack of access to existing and well established business networks which are a must in a country like India to
successfully transact business.
Banks dont easily lend to the community depriving them of the much needed capital for starting ventures.
Dalits are also a not a monolithic community and fissures of clan, strata might creep into the achievement
of the goal of Dalit Capitalism

Criticism of Dalit Capitalism

Leftist critique of Dalit Capitalism would argue that Dalits are using the inherently exploitative system of
capitalism for their emancipation and advancement. The previously exploited will act as exploiters now.
Free Market has not acted as an equalizer in the US where African Americans still languish at the bottom of
most socio-economic indicators.

Government steps

National Schedule Caste Finance and Development Corporation offers loans to the SC Community for
Entrepreneurship development and other activities.
The IFCI provides venture capital loans for the SCs upto an amount of 15 crores.
Recently launched Start Up India Programme will provide support to entrepreneurs including credit
guarantee programme for SCs.
MUDRA Bank will give leading priority to SC/ST for extending credit facilities.
DICCI SME fund plans to shell out loans worth 500 crore in the next 10 years.
The government has launched the Green Business Scheme. Green Business Scheme envisioned financial
assistance to Dalits to combat climate change.

4.9. END OF EBOLA EPIDEMIC

(For details refer August 2015 Current Affairs)
Background

Ebola virus disease (EVD), formerly known as Ebola haemorrhagic fever, is a severe, often fatal illness in
humans.
The virus is transmitted to people from wild animals and spreads in the human population through humanto-human transmission.
The worst affected countries were Sierra Leone, Guinea and Liberia.
Guinea, Sierra Leone and Liberia had very weak health systems and lacked human and infrastructural
resources.

What is the current status of the disease in Africa?

56

Liberia was declared free of the disease by WHO in May, 2015 and then again in January 2016 as new cases
emerged two times after that.
November 2015, Sierra Leone and Guinea were declared free of Ebola virus by WHO.

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How does WHO declare a country to be free of the virus?

Declared free after the last confirmed case has tested negative twice on the blood samples a country has to
go through an incubation period of 42 days.
Bur thereafter the countries are placed on a 90 days heightened surveillance.

What was the impact of Ebola in its latest outbreak?

Ebola has killed more than 11300 people since 2014 and infected 29000 people.
Stigma and risk aversion have affected contacts with the West African countries and hence greatly affected
the economy.
Poverty and food insecurity could increase as a result of the impact on economy.

Is there a cure for Ebola?

There is as yet no proven treatment available for EVD.

However, a range of potential treatments including blood products, immune therapies and drug therapies
are currently being evaluated.
No licensed vaccines are available yet, but 2 potential vaccines are undergoing human safety testing.

Why is the WHO criticised?

It had a very sluggish response to the disease when it began in 2014 although intensified efforts later.
This lead to a very high death toll in the beginning.

Lessons for India

Outbreak in any country is a threat to all countries.

It is possible to contain the virus early if the response is swift and based on evidence.
Crucial to invest in a sustainable public health infrastructure or health systems.
The panic and hysteria can lead to counterproductive measures.

4.10. KERALA BECOMES THE FIRST TO ACHIEVE 100% LITERACY

Kerala became the first state in the country to achieve 100 percent primary education.
This has been achieved through the primary education equivalency drive of the state literacy mission
Athulyam.

More about Athulyam

It was launched in March 2013 and was carried out in two phases.
It had identified people who had not completed their primary education.
The programme was meant to provide primary school education to people aged between 15 and 50.
After this these people were given five-month training, enabling them to attend the fourth equivalency
examination.
Two Lakh people were enrolled under this programme.

4.11. NATIONAL CENTRE FOR AGEING

The Union Health Ministry recently approved two National Centre for Ageing to come up in India.

What are the National Centres for Ageing?

57

Highly specialized centers of excellence for geriatric care or care of the elderly.
They will develop manuals for home care and provide training to the specialists and formulate protocols in
areas of elderly care.
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The Centres will be set up under the National Programme for Health Care of the Elderly.
They will be set up during the twelfth five year plan period at the
What is Geriatric Care?
All India Institute of Medical Sciences, New Delhi and the other
Also known as Ageing Life Care, is the
at the Madras Medical College in Chennai
process of planning and coordinating

Objectives

To provide specialized health care to the elderly as they are

highly prone to diseases.
To fill the gap caused by no specialization in geriatric medicine in
India.
Training of health professionals in the area.
Research Activities in geriatric care.
200 bedded in patient facility for the elderly.

care of the elderly and others with

physical or mental impairments to meet
their long term care needs, improve
their quality of life and maintain their
independence for as long as possible.

What are the Problems faced by elderly in India?

Seventy percent aged depend on others for their day to day maintenance. Its 85 percent in case of elderly
women.
79% in rural areas and 35% in urban areas do not get any benefits after retirement.
10% of elderly in India suffer from depression and 40-50% require psychiatric or psychological intervention
at some point.
Informal support and family structures are disappearing fast and formal structures have not replaced them
adequately.

Way Ahead

Promoting awareness about the concept of healthy ageing and the health problems and to involve the
community in the process of their mitigation.
Exploration of PPP models in the infrastructure development of health care for elderly.
Special attention to elderly who are disabled, poor, in rural areas, SC/STs, women, destitute.

4.12. BALAMURTHAM PROGRAMME

What is Balamrutham?

Balamrutham is the weaning food introduced under ICDS to provide improved supplementary nutrition to
children between 7 months to 3 years.
It is fortified and thus provides 50% of iron, calcium, vitamins and other RDA that children require per day.

What is the Balamrutham Programme?

The Balamrutham Programme was started by the Andhra Pradesh Government in 2013.
Under this programme children enrolled with Anganwadis were
Other Government Nutrition Initiatives
given Balamrutham of 2.5kg per child to provide quality diet to
in India
infants

What is the Controversy surrounding Balamrutham?

58

AP foods which is located in Telangana now, used to supply

Balamrutham to the whole of Andhra.
After the bifurcation, supply of Balamrutham to Andhra stopped

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National programmes such as Sarva

Shiksha Abhiyan, Mid-Day Meal
Programme, the NRHM or Janani
Shishu Suraksha Karyakram.
National Nutrition Mission.
Rashtriya Bal Swasthya Karyakram
Weekly
Iron
Folic
Acid
Supplementation
Universal supplementation of iron and
vitamin A.
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What is the significance of the Balamrutham Programme?

59

Poor quality of diet is among the chief reasons for the increasing IMR in the country.
According to the Human Development Report, 2015 India has an IMR of 41 per thousand live births which is
very high compared to the developed countries.
Nutritious food for their infants is out of the reach of most mothers in India.

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5. SCIENCE AND TECHNOLOGY

5.1. ZIKA VIRUS
Origin
It was first identified in monkeys in Uganda in 1947.
The first human case was detected in Nigeria in 1954 and there have been further outbreaks in Africa, South
East Asia and the Pacific Islands.
Countries Affected

In May 2015, it was reported in Brazil and has spread rapidly.

It has since also been reported in: Barbados, Bolivia, Colombia, the Dominican Republic, Ecuador, El
Salvador, French Guiana, Guatemala, Guadeloupe, Guyana, Haiti, Honduras, Martinique, Mexico, Panama,
Paraguay, Puerto Rico, Saint Martin, Suriname and Venezuela.
Recently, few cases of Zika Virus has been confirmed in Texas, USA.
According to senior experts in WHO, the Zika virus outbreak in Latin America could be a bigger threat to
global health than the Ebola epidemic.

Cycle of Spread

It is spread by Aedes mosquitoes.

They are found throughout the Americas except
for Canada and Chile where it is too cold for
them to survive.
If mosquitoes drink the blood of an infected
person they can then infect subsequent people
they bite.
Unlike the mosquitoes that spread malaria, they
are mostly active during the day, so bed nets
offer limited protection.

Affected People

Most virus carriers are symptomless.

It is a silent infection in a group of highly vulnerable individuals pregnant women which in turn is
associated with a horrible outcome for their
babies.

How to prevent it?

As there is no treatment/vaccination available

for the treatment of Zika virus, the only option is
to reduce the risk of being bitten. Hence people
are advised toUse insect repellents
Cover up with long-sleeved clothes
Keep windows and doors closed

Actions Taken

60

The Indian Health Ministry have started constituting a technical group to monitor the spread of Zika virus in
India.
At International level, the WHO will also convene an international health regulations emergency committee
on Zika on February 1st.
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5.2. SPACE PARKS: ISRO

The Indian space agency will open a 100-acre Space Park in Bangalore where private industry players would
be allowed to set up facilities to make subsystems and components for satellites.
ISRO wants to groom and engage domestic industry in the launch vehicles area from integrating sub-systems
up to assembling, and even launching the PSLV.
On the spacecraft front, ISRO plans to increasingly support small and mid-sized industries at its 10-year-old
second spacecraft complex, the 100-acre ISITE, at Marathahalli in Bengaluru.
The Space Park will also contribute to the governments Make in India initiative as the private industry and
HAL (Hindustan Aeronautics Ltd) have been helping us in making rockets and satellites over the years.
Also in the pipeline is allowing private players to make satellites and providing them facility at Sriharikota for
launch.

Why is ISRO helping private sector?

It could help ISRO to focus on its other core activities and

Develop an ecosystem (including private players) in space research and production.
To cater to the increasing demand new satellites and replacing old ones.

5.3. canSAR DATABASE

It is a huge 3-dimensional pool of Big Data that provides information about cancer drugs, chemicals, and
molecular structures for improving cancer therapy designs.
Launched in 2011, it was developed at the Cancer Research UK Cancer Therapeutics Unit at the Institute of
Cancer Research.
The goal was to create a massive database that would map how millions of drugs impact human proteins
and molecules, then combine that with information about genes and clinical trial results.
The database provides 3-dimensional models of the structures of 110,000 molecules to identify the cavities
on cancer-causing molecules, and then create new drugs to attack them.

5.4. NANO TECHNOLOGY AND SUPERBUGS

61

A new, adaptive, light-activated Nano therapy could kill superbugs that have become resistant to antibiotics.
The dots, which are about 20,000 times smaller than a human hair and resemble the tiny semiconductors
used in consumer electronics, successfully killed 92 percent of drug-resistant bacterial cells in a lab-grown
culture.
Special Features of Quantum dots based therapy
o Targeted tissue damage: Previous research on nanoparticles showed that gold and silver nanoparticles
can be harmful to healthy tissue as well as the target bacteria. But that kind of collateral damage doesn't
seem to be a problem with the new quantum dots.
o Made of semiconducting materials like cadmium telluride instead of metal, they can be tailored to
specific infections, slipping inside the disease-causing germs and, when activated by light, triggering
chemical reactions that destroy them.
A typical weak light source (a lamp, well-lighted room, sunlight, etc.) is enough to activate these quantum
dots.
Depending on the nature of the infection several applications for quantum dots can be: covering infected
cuts might simply be with nanoparticle-impregnated bandages and injecting quantum dots into infectious
system.
In addition, hospital rooms and medical instruments might be treated with a dot-containing disinfectant in
order to reduce the risk of spreading infections from patient to patient.
But more research, including clinical trials, will be needed to develop quantum dot therapy and prove its
safety and effectiveness in humans.
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5.5. HYDROGEN BOMB

Why in news?
North Korea announced on January 6 that it had successfully tested a hydrogen bomb.
What is a hydrogen bomb?

Hydrogen bombs are thermonuclear weapons.

A thermonuclear weapon is a nuclear weapon that uses the
energy from a primary nuclear fission reaction to compress
and ignite a secondary nuclear fusion reaction.
The result is greatly increased explosive power when
compared to single-stage fission weapons.
It is colloquially referred to as a hydrogen bomb or H-bomb
because it employs fusion of isotopes of hydrogen.

Salient Features of Hydrogen Bomb

62

A Hydrogen bomb is a much more powerful atomic weapon.

The energy released in a Hydrogen bomb is several magnitudes higher than an Atom bomb.
Hydrogen bombs use the fusion of hydrogen atoms, hence its name.
A fusion bomb is more sophisticated and difficult to make, since it requires a much higher temperature -- in
the order of millions of degrees centigrade. So a fission is carried out first to produce more energy, which is
then used to initiate fusion. In a fusion bomb, a fission device has to be triggered first.
It is easier to make Hydrogen bombs in small size, so it is easier to place them in missiles.
Hiroshima and Nagasaki both were atomic bombs and till date Hydrogen bombs have never been used in
war.

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5.6. HVDC TECHNOLOGY

Why in News?

In next three years, India will see some 34,000 megawatt (Mw) of power being transported over long
distances, primarily to the northern and the southern regions.
This will be made possible through setting up of large trunk transmission HVDC lines.

What is HVDC?

High-voltage direct current (HVDC) is a technology developed to increase the efficiency of power
transmission over long distances by using Direct current transmission at high voltage.

Background and Technology:

Power stations generate alternating current (AC) and most power lines carry AC that oscillates with 50 or 60
cycles per second, whether for the high, medium or low-voltage distribution grid.
Power also reaches consumers in homes, industries and offices as AC.
Direct current doesn't oscillate, so less energy is lost during transmission using DC.
The current is changed in a converter station and transmitted to the receiving point by an overhead line or
cable.
It is then restored to AC in another converter station and injected into the receiving AC network.
A 2,000-km long DC transmission line at 800 kV loses about 5 percent of its power, while the power losses in
an AC line of similar voltage are about twice as high.

Why HVDC demand is increasing?

63

rising energy needs

less electricity is lost in transmission than with conventional AC technology
requires fewer transmission lines, meaning that less land has to be cleared
Why HVDC only for longer transmission?
Because special equipment is needed to convert electricity from alternating current to direct current, HVDC
is cheaper only over long distances, typically more than 600 kilometers for overhead lines and more than 50
km for underwater cables

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HVDCs relevance for renewable energy?

There are challenges to large scale integration of renewable generation into the energy mix.
To be viable, projects have to be installed where they can be fully and efficiently utilized, and such locations
are typically far away from load centers that need the energy the most.
Hence, integrating renewable generation on a large scale will also require a considerable increase in power
transmission capacity and efficiency.

Indias first HVDC transmission line

Indias first high-voltage, direct-current (HVDC) transmission line was built by the state-owned PowerGrid
connecting the northern states with the north-eastern ones.
The HVDC corridor would facilitate transfer of 24,000 Mw from future power generation projects in the
northeastern region and Bhutan.
The corridor would help resolve the issue of congestion in the north and northeast regions.

5.7. OPOGENETICS AND CLARITY

Why in news?

Prof. Deisseroth (Professor of Bioengineering and of Psychiatry

and Behavioural Sciences at Stanford University) was recently
awarded prestigious Life Sciences Breakthrough Prize for 2016.
He has devised two path-breaking techniques that are changing
understanding and control of the brain.

What is Optogenetics?

It is combining genetics and optics.

It is a neuromodulation method employed in neuroscience that uses a combination of techniques from
optics and genetics to control and monitor the activities of individual neurons in living tissueeven within
freely-moving animalsand to precisely measure the effects of those manipulations in real-time
Use of optogenetics
It has potential to treat disease like Parkinsons disease.
It can also be used to cure blindness.

What is CLARITY?

CLARITY (Clear Lipid-exchanged Acrylamide-hybridized Rigid

Imaging / Immunostaining / in situ-hybridizationcompatible Tissue hydrogel) is a method of making brain
tissue transparent using acrylamide-based hydrogels built
from within, and linked to, the tissue.

5.8. CLOUD COMPUTING AND BIG DATA

Why in news?

64

At the recently concluded 103rd Indian Science Congress,

experts said that Cloud computing can be the solution to Big
data problem.

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What is Big Data?

Big data is a term that describes the large volume of data both structured and unstructured beyond the
ability of commonly used software tools to capture, curate, manage, and process data within a tolerable
elapsed time.
Its what organizations do with the data that matters. Big data can be analyzed for insights that lead to
better decisions and strategic business moves.
Big data is characterized by 3Vs

Applications of Big Data

Companies use big data to better understand and target customers by bringing together data from their own
transactions as well as social media data and even weather predictions.
Businesses optimize their processes by tracking and analyzing their supply chain delivery routes and combine
that data this with live traffic updates. Others use machine data to optimize the service cycles of their
equipment and predict potential faults.
Big Data is used in healthcare to find new cures for cancer, to optimize treatment and even predict diseases
before any physical symptoms appear.
Big Data is used to analyze and improve the performance of individuals (at sports, at home or work) where
data from sensors in equipment and wearable devices can be combined with video analytics to get insights
that traditionally where impossible to see.
Police forces and security agencies use big data to prevent cyber-attacks, detect credit card fraud, foil
terrorism and even predict criminal activity.
Big Data is used to improve our homes, cities and countries by e.g. optimizing the heating or lighting in our
homes, the traffic flow in our cities, or the energy grit across the country.

How is cloud computing related to Big data?

Cloud computing is very important in BIG data analytics due to its application sharing and cost effective
properties.
This technology will help in current genomic data storage and analysis.
To head towards sustainable livelihood and development, such analyses with respect to agriculture including
plants and animals are crucial.
90% of the data in the world today has been created in the last two years alone.

5.9. FACEBOOKS FREE BASICS TUSSLES WITH TRAI

Why in news?

The Telecom Regulatory Authority of India accused Facebook for turning

the consultation over differential pricing of data services into an
orchestrated opinion poll on its Free Basics product.
Indias telecom regulator has received over 14 lakh responses in support
of Facebooks Free Basics, virtually all redundant for formulating a policy
as the regulator had sought views on the principle of differential pricing
for data services.

What is Free Basics?

65

Internet.org was rechristened Free Basics in September.

According to Facebook, it is an open platform that gives Indian
developers the opportunity to make their services and websites available
free of cost to those who cannot afford internet access.
However, this free access is limited to partner websites and applications.
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TRAIS Consultation paper:

The consultation paper on
differential pricing of data
services raises concerns over
zero-rating tariff models a
practice
wherein
service
providers offer free data to users
for select applications and
websites. According to Internet
activists, this model violates the
principle of net neutrality as it
restricts access to free, open
Internet for users, making the
paper key to the ongoing debate
on net neutrality.
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It was launched two years ago globally in partnership with Samsung, Ericsson, MediaTek, Opera Software,
Nokia and Qualcomm.

Whats the problem with Free Basics?

It doesnt offer equal and unbiased access to all services.

Facebook is partnering with ISPs to provide preferential and selective access to a set of app developers and
services.
Critics argue that the internet should be free and equal for all users. This is also the cornerstone of net
neutrality.

5.10. HISAR CENTRE SECOND INSTITUTE TO CLONE BUFFALO

ICAR-Central Institute for Research on Buffaloes (CIRB) has produced cloned calf called HISAR GOURAV.
This cloned buffalo calf is distinct from the earlier clones produced in India, as this is produced from cells of
ventral side of tail of superior buffalo bull.
This part is least exposed to sunlight and may have less mutation rate, and can be good choice for isolation
of donor cells to produce healthy clones.
It has been emphasized that the use of adult somatic cells of proven males or quality females for cloning can
bring revolution by multiplying the superior buffalo germplasm in country.
With this achievement CIRB becomes worlds third and Indias second institute to produce cloned buffalo.
National Dairy Research Institute in Karnal was the first to produce a cloned calf in India.
This achievement has been made under the project entitled, Cloning for conservation and multiplication of
superior buffalo germplasm.

5.11. ARTIFICIAL INTELLIGENCE

In the news:

Marvin Minsky, a pioneer of Artificial Intelligence died on 24 January due to cerebral haemorrhage.

What is artificial intelligence?

It is the science and engineering of making intelligent machines, especially intelligent computer programs.
It is related to the similar task of using computers to understand human intelligence, but AI does not have to
confine itself to methods that are biologically observable.
AI is not always about simulating human intelligence. There is something about how to make machines solve
problems by observing other people.
However, most work in AI involves studying the problems the world presents to intelligence rather than
studying people or animals.
AI researchers are free to use methods that are not observed in people or that involve much more
computing than people can do.

5.12. EXPERIMENTAL
CIRCUMSTANCES

MEDICINES

UNDER

THE

EXCEPTIONAL

Why in news?

66

World Health Organization (WHO) in August 2014 declared that it was not unethical to use experimental
medicines (Zmap and convalescent plasma therapy) under the exceptional circumstances as witnessed in
West Africa during Ebola outbreak.
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What is convalescent plasma technique and how does it work?

The rationale of techniques is that the plasma taken from survivors will have antibodies (against the virus)
that would fight the virus. It is similar to passive immunity (which results when a person is given someone
elses antibodies) technique.
However, its potential depends on amount of antibodies introduced. There is a direct correlation between
antibody level and its effectiveness.
It had once been used successfully to treat measles, mumps, pneumonia, influenza and diphtheria.

Results of the trail:

It was seen that both antibody and cell mediated responses are important to treat Ebola.
Higher amount of Antibodies need to be infused to make it effective.
Children younger than five and pregnant women have been found to benefit the most when compared with
others.
The plasma was not found to be safe for treatment of the Ebola virus disease.
The virus has been found in semen and in the eye long after it was cleared from the blood, care need to be
taken to avoid giving plasma containing the virus.
WHO has said trial is acceptable at all stakeholders level patients, family, health-care providers and
researchers.
Such trails are essential for future experiments.

5.13. 103 RD INDIAN SCIENCE CONGRESS AND TECHNOLOGY VISION

DOCUMENT 2035
Why in news?

103rd Indian Science congress in Mysuru was organized with the focal theme Science and Technology for
Indigenous Development in India.
It has been prepared by Technology Information, Forecasting and Assessment Council, (TIFAC)

Aim of Technology Vision Document 2035:

The Aim of this Technology Vision Document 2035 is to ensure the Security, Enhancing of Prosperity, and
Enhancing Identity of every Indian.

It also identifies twelve (12) prerogatives- (six for meeting individual needs and six for the collective needs) that
should be available to each and every Indian. These are:

67

It categorizes technologies into a six-fold classification from an Indian perspective which is as follows:
Technology Leadership niche technologies in which we have core competencies, skilled manpower,
infrastructure and a traditional knowledge base eg., Nuclear Energy, Space Science.
Technology Independence strategic technologies that we would have to develop on our own as they may
not be obtainable from elsewhere eg. Defence sector.
Technology Innovation linking disparate technologies together or making a breakthrough in one
technology and applying it to another eg. solar cells patterned on chlorophyll based synthetic pathway are a
potent future source of renewable energy.
Technology Adoption obtain technologies from elsewhere, modify them according to local needs and
reduce dependence on other sources eg., foreign collaboration in the sectors of rainwater harvesting, agribiotech, desalination, energy efficient buildings.
Technology Constraints areas where technology is threatening and problematic i.e. having a negative
social or environmental impact because of serious legal and ethical issues eg., Genetically Modified(GM)
Crops.

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The Vision Document gives a Call to Action to all the key stakeholders

Technical Education Institutions engage in advanced research on a large scale leading to path-breaking
innovations.
Government enhances financial support from current 1% to long-envisaged 2% of the GDP.
Full-time equivalent Scientists in the core research sector should increase.
Private Sector Participation and Investment in evolving technologies that is readily deployable and is
translatable from lab to field thereby increasing efficiency in terms of technology and economic returns.
Academia-Intelligentsia-Industry connect is established via idea exchange, innovative curricula design,
based on the needs of the industry, industry-sponsored student internships and research fellowships inter
alia.
Creation of a Research Ecosystem to achieve translation of research to technology product/process by
integrating students, researchers and entrepreneurs.

Three key activities identified as a part of

the Call to Action

Knowledge creation: It says that India

cannot afford not to be in the forefront
of the knowledge revolution, either
applied or pure.
Ecosystem design for innovation and
development: the primary responsibility
for ecosystem design must necessarily
rests with government authorities.
Technology deployment: with launching
certain national missions involving
specific targets, defined timelines
requiring only a few carefully defined
identified players.

5.14. 23 RD NATIONAL CHILDREN SCIENCE CONGRESS (NCSC)

68

23rd NCSC (started in 1993) was based on the theme

of 'Understanding Weather and Climate'
Nearly 1,400 students in age group 10 to 17 years,
from various schools presented projects under various
categories depicting the problems faced by world due
to climate change or possible solutions.
More than 300 scientists and researchers from
Department of Science and Technology also
participated.
To stimulate scientific temperament and learning the
scientific methodology.

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Objectives of NCSC:
Forum for young scientists to pursue their natural
curiosity and to quench their thirst for creativity by
experimenting on open-ended problems.
To make children feel that science is all around and
you can gain knowledge as well as solve many
problems.
To encourage children to visualize future of the
nation and help build generation of sensitive,
responsible citizens.

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6. INTERNAL SECURITY/LAW AND ORDER

6.1. NATIONAL SECURITY DOCTRINE
Why in news?

In the aftermath of Pathankot attacks experts are of views that there is an imminent need for National
Security Doctrine.

Issues in Indias national security

Inconsistent security response i.e., calling of NSG to combat in Pathankot, even when trained army
personnel acquainted to local terrain were available at the site itself.
Similarly, in Mumbai attacks, NSG was stationed in city itself but took long time to come to action.
Ignoring or inaction on intelligence inputs.
Heavy casualties due to improper co-ordination among security agencies.
No accountability even after failures of any agency

WHY INDIA NEEDS A SECURITY DOCTRINE

Prompt and relevant decision making would result in consistent security response at the time of
insurgencies. The decisions would be guided by the national security strategy enshrined in the doctrine.
Maintaining proper co-ordination among security establishments at both at central and federal level. This
would avoid terror attacks which occurred even when intelligence agencies have inputs.
This would make the security establishment more accountable in case of any failures to combat terror
attacks.
A prompt and successful handling can ensure peace, progress and development within the country.

WHAT IS A NATIONAL SECURITY DOCTRINE?

A Doctrine is a stated principle of government policy in different domains viz foreign affairs, military etc.
NSD is a document which guides the government on security matters at both strategic and operational level.
NSD is applied through strategy, tactics and specific operations at different situation underlined in the
doctrine.
Currently, only defense establishment in India have a doctrine for external security.

6.2. ANALYSIS OF PATHANKOT ATTACK

Why in News?

On 2 January 2016, a heavily armed group attacked the Pathankot Air

Force Station, part of the Western Air Command of the Indian Air Force.

Impact of such attacks on India-Pakistan relations

69

Pathankot Air Force Station is a

military airport located 3 km
from Pathankot, India, on the
Pathankot Majra Road. It is
part
of
the Western
Air
Command of
the Indian
Air
Force and covers an area of
approximately 2000 acres.

The attack on the Pathankot IAF base is part of a long string of spoiler
attacks aimed at undermining India-Pakistan relations.
Pakistani militants with deep connections to the Pakistan army, such
Lashkar-e-Taiba and Jaish-e-Muhammad, have regularly struck after
signs of a thaw.
A research shows that such spoiler attacks will not have significant impact, as successful spoiling rests on
conditions that currently dont exist in India.

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Concerns

Ineffectiveness of Indias Pakistan Policy

New Delhi lacks the capability to impose costs for cross-border terrorism
India still has no written national security doctrine, and whatever is practised as the doctrine, and strategy, is
vastly inadequate.
Lack of Political consensus on national issues
Security lapses- lack of security, terrorists penetrated the camp with ease.
Lack of robust national security doctrine
Lack of coordination between various security agencies
Lack of cohesive command and control structure
Too many holes in the intelligence security ecosystem
o Pinpointed intelligence input ignored.
o Perimeter of the Pathankot airbase not secured despite warnings.
o National Security Guard (NSG) sent in when the Army has a crack Special Forces unit nearby.
o Border Security Force ineffectiveness.
o Ineffectiveness of surveillance equipment and night vision devices.

Lessons from Pathankot attack/Way forward

Need to differentiate between the Pakistan government and non-state actors and show greater diplomatic
restraint
Need to Evolve national security doctrine to respond to such attacks
o The proposed security doctrine must be anchored in the foundational values of the Constitution.
o The doctrine must be accompanied by a national security strategy that spells out the command and
control structures for meeting eventualities such as terror strikes.
Revival of NATGRID.
Political consensus must be evolved, in a publicly transparent manner, to reflect the complex challenge
facing the country.
Security around a forward air force base needs to be much better.
As these attacks have become predictable, India needs to have blueprints in place to protect Indian nuclear
installations and naval bases, as well as Indian diplomatic missions.
Punjab is facing two serious challenges- corruption and drug trafficking India cannot afford such
mismanagement of a strategic border state.
India must now activate its diplomacy in the U.S. to act tougher on Pakistan.
India must prepare for an effective and integral response to the threat of cross-border terrorism. When it
comes to dealing with terrorism, there is a need to further improve Centre-state collaboration as well as
civil-military coordination.
Border defence, intelligence and internal security reforms are the best defence against these urban
spectacular threats.

6.3. COOPERATIOON IN CYBERSECURITY

70

Cyber-attacks in India have increased in last few years.

As the government aims to increase the Internet penetration further, more and more local organizations
may be exposed to cyberattacks.
The present government is making efforts to establish extensive cybersecurity cooperation to ensure
protected cyber networks.
This would help in mutual sharing of information and best-practices, both of which are critical a
constructing a robust response to conspicuous cyber incidents. For instance,
o India and UK are collaborating for joint training of its cybersecurity professionals and setting up a
Cybersecurity training center for exchange of information and expertise. UK would also help in
establishing a Cybercrime Unit in India.
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India and China are establishing high level ministerial

mechanisms under their respective Home ministries
to help in information exchange, law enforcement
and technical capacity building to jointly combat
cybercriminal activity.
India and USA have jointly committed to strengthen
cooperation on a range of cybersecurity issues.

LATEST DEVELOPMENT

The Indian Computer Emergency Response Team (CERTIn) has signed cooperation pacts with its counterparts in
Malaysia, Singapore and Japan for cyber security.
This will also facilitate regular dialogues pertaining to
prevalent policies and best practices and mutual
response to cyber-security incidents.

CERT-IN: BACKGROUND
The Indian Computer Emergency Response
Team (CERT-In) is the national nodal agency
since 2004 for responding to cyber security
incidents as and when they occur.
It operates under Ministry of Communication
and Information Technology.
Its major work includes collection, analysis and
dissemination of information on cyber incidents,
forecasting alerts and taking emergency
measures to handle a cyber-situation. It also
coordinates the cyber incidents response
activities and issues guidelines and advisories on
best practices for prevention, reporting and
response.

6.4. NATGRID
Why in news?

To fight against terrorism Central government has decided to revive NATGRID (National Intelligence Grid).

What is NATGRID?

NATGRID is the integrated intelligence grid connecting databases of core security agencies of the
Government of India to collect comprehensive patterns of intelligence that can be readily accessed by
intelligence agencies.
It was conceived in the wake of the 2008 Mumbai attacks.

Functioning

NATGRID is an intelligence sharing network that collates data from the standalone databases of the various
agencies and ministries of the Indian government.
It is a counter terrorism measure that collects and collates a host of information from government
databases including tax and bank account details, credit card transactions, visa and immigration records and
itineraries of rail and air travel.
This combined data will be made available to 11 central agencies, which are: Research and Analysis Wing,
the Intelligence Bureau, Central Bureau of Investigation, Financial intelligence unit, Central Board of Direct
Taxes, Directorate of Revenue Intelligence, Enforcement Directorate, Narcotics Control Bureau, Central
Board of Excise and Customs and the Directorate General of Central Excise Intelligence.

Need for Revamp

71

In its present form, NATGRID suffers from many inadequacies, some due to bureaucratic red tape and others
due to fundamental flaws in the system.
Social media and other platforms have become recruitment sites and propaganda machines for terrorist
groups, and formal banking channels are used as much as informal ones to transact terror funding.
Weaknesses in India's intelligence gathering and action networks.
India is not far from the days when cyber warfare will become its primary security issue. For example in
September last year, the website of the government of Kerala was hacked by Pakistani hackers.

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Importance of NATGRID

It will become a secure centralised database to stream sensitive information from 21 sets of data sources.
The database would be accessible to authorised persons from 11 agencies on a case-to-case basis, and only
for professional investigations into suspected cases of terrorism.
It can provide the real time tip-offs and predictive intelligence to deal with the terrorist threat.
It will help to collate scattered information into a transparent, accessible, integrated grid and do away with
the inefficiencies associated with information asymmetries that hitherto delayed counter-terror operations.
It will help fight Financial Terrorism.

Criticism

The state police or different defence departments are not mentioned among the 10 "user agencies" who will
be able to electronically access 21 sensitive databases.
NATGRID effectiveness will be reduced if the Central agencies are not willing to share current intelligence
with the State agencies.
NATGRID faced opposition on charges of possible violations of privacy and leakage of confidential personal
information.
NATGRID will have access to all kinds of data under one roof and can also prove to be counter-productive if
misused.
NATGRID also faces issues like consolidating data from a huge population, lack of compatibility with data sets
in regional languages, risk of spies ratting out vital information to outside sources and security from external
attacks.

Precautions

As the NATGRID will have very sensitive information about individuals, potential for its misuse is also very
high.
Government must take measures to ensure that the information does not fall through the firewalls that
guard it.
NATGRID has the potential to become Indias go-to grid for a 360-degree perspective to prevent and contain
crises.

6.5. TEJAS

Indias indigenous Light Combat Aircraft (LCA) Tejas participated

in the Bahrain International Air Show 2016 recently. This was
the first appearance of Tejas at a foreign air show.
LCA Tejas has not been inducted into the IAF yet.
Starting in 1984, Tejas has been designed and developed by
Aeronautical Development Agency with Hindustan Aeronautics
Ltd and Defence Research and Development Organisation.

JF-17

72

JF-17 Thunder is a third-generation fighter co-produced by Pakistan and China. It has been in service since
2010.

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Comparison of Indias Tejas with Pakistans JF-17 Thunder

6.6. INDIAN RESERVE BATTALION FORCES

The central government has recently decided to raise additional 17 IRB for Jammu and Kashmir and LWE
affected areas.
About Indian Reserve Battalion
It included 5 battalions in J&K, 4 in Chhattisgarh, 3 each in
The Indian Reserve Battalion (IRB) is an
Jharkhand and Orissa and 2 in Maharashtra.
elite force meant to handle serious law
There is emphasis placed on the recruitment of local youths
and order problems in a state, mainly
for these forces and if required the age and educational
left-wing extremism and terrorism.
criteria will be relaxed. E.g. 60% of the recruitment in J&K has
It provides touch support to the local
to be done from the border districts.
police forces in dealing with such activities
The government has so far sanctioned 153 battalions to
in whatever shape they may take place in
various states under its scheme of Indian Reserve Battalions
different parts of the state.
introduced in 1971.
It is trained and equipped to deal in
specific circumstances and not designed
to supplant the normal functions of
police force.
The initial funding for raising the IRB is
done by using central funds. Their
management, however, rests with the
respective states.

SIGNIFICANCE OF THE DECISION

73

This will add to the anti-Maoist and anti-terrorist strength of

the state police.
The provision of recruitment of local people would be crucial
in many ways:
o It will reduce the trust deficit between Army & CAPFs and
local populace.
o Knowledge of local conditions is better for intelligence gathering and carrying out operations.
o Generating employment opportunities in these areas would help in removing poverty and also checking
the radicalization and diversion of the youth by bringing them into mainstream.
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7. ECOLOGY AND ENVIRONMENT

7.1. INTERNATIONAL SOLAR ALLIANCE (ISA)
Why in News

On his recent visit to India, French president along with Indian

Sunshine Countries
Prime Minister has laid the foundation stone for an interim
The sunshine countries comprise all
secretariat of the International Solar Alliance (ISA) in Gurgaon.
major countries which come either
Earlier, India and France had launched an International Solar
completely or partly between the tropic
of Cancer and the tropic of Capricorn. It
Alliance (ISA) at the CoP21 Climate Conference Paris in Dec, 2015.
comprises 107 countries.
The ISA Secretariat would be set up at National Institute of Solar
Energy, Gurgaon in India.
Indian government will provide land and $30 million to form a secretariat for the Alliance, and will support it
for five years.

Objectives

Promote solar technologies and investment in the solar sector to enhance income generation for the poor
and global environment.
Formulate projects and programme to promote solar applications.
Develop innovative Financial Mechanisms to reduce cost of capital.
Build a common Knowledge e-Portal.
Facilitate capacity building for promotion and absorption of solar technologies and R&D among member
countries.

Benefits to India

Launching of ISA has set up the stage for India's proactive and forward-looking leadership on climate change
and the transition to a less carbon-intensive growth trajectory.
This will help India in meeting its solar energy target which is to generate the 100GW of solar energy by
2022.
It will also help in bringing down the price of solar technology which will further help in accelerating the
development of the country.
It will also help India to meet its Intended Nationally Determined Contribution target.

Challenges Ahead

Funding: Although alliance talks about developing innovative financial mechanisms, it does not address
how the capital would be provided.
Technology Sharing: There is need to create a comprehensive framework to share the modern solar
technologies at low cost.

7.2. BHARAT STAGE VI NORMS BY 2020

Why in news?

74

In a move to curb vehicular pollution, Indian government has decided to move up to the toughest emission
standards of BS-VI from the current BS-IV by April 2020 skipping BS-V standard.

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By switching to BS-VI, India will join the league

of the US, Japan and the European Union,
which follow Euro Stage VI emission norms.
BS-VI is the Indian equivalent of Euro Stage VI.
Currently BS-IV norms are currently followed
across 63 Indian cities for petrol and diesel,
while the rest still use BS-III fuel.

Need

Considering the environmental impact, rising

pollution levels and health hazards due to
vehicular pollution, has led to this decision.
According to a study conducted by CSE, air
pollution claims at least 10,000-30,000 lives a
year in Delhi. It is one of the top 10 killers in the
world and the fifth leading cause of death in
India.

BS VI Norms

The BS-IV compliant fuels have Sulphur concentration of 50

parts per million (ppm).
This will come down to as low as 10 ppm in BS-VI compliant
fuels and auto engines. This means a lower level of harmful
emissions and reduced incidence of lung diseases.
The switch to BS-VI norms will also reduce concentration of
carbon monoxide, unburnt hydrocarbons, nitrous oxide and
particulate matter from emissions.
This jump will make a huge impact and significantly bring
down share of vehicular pollution in the overall air pollution
of the country.

Bharat Stage Norms

Bharat stage emission standards are
emission standards instituted by the
Government of India to regulate the
output of air pollutants from internal
combustion engine equipment, including
motor vehicles.
The standards and the timeline for
implementation are set by the Central
Pollution Control Board under the
Ministry of Environment & Forests and
climate change.
The standards, based on European
regulations were first introduced in
2000.

Challenges

It will make cars, sports utility vehicles (SUVs), trucks and buses more expensive.
Moving to BS-VI directly will require significant technological upgrades and auto companies may have to
invest heavily
Generally, it requires four years to graduate from one stage to another. And in this case, skipping one stage,
companies may need more time to implement this. Even, the Auto Fuel Policy had recommended
implementation of BS-VI norms by 2024.
A bloated population of vehicles using fossil fuels has affected travel speeds, worsening pollution levels.
Poor civic governance has left roads unpaved and public spaces filled with debris and construction dust,
constantly re-circulating particulate matter in the air.
And also, the monitoring of diesel passenger and commercial vehicles which are the biggest contributors to
total emissions, is not efficient and effective.

Way Forward

75

Government should also focus on raising the fuel standard and introducing policy initiatives that would
influence passenger behaviour and cut personal travel kilometers by 25 per cent.
Government must show the diligence in making policy changes in partnership with State governments to
clean up the air.

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7.3. DELHI'S ODD EVEN POLICY

What is Odd Even Policy?

The policy envisages reducing the number of vehicles on Delhi roads by about 50%, which is expected to
reduce the level of air pollution in the city.
Odd numbered cars to ply on odd dates, even numbered cars on even dates.
A fine of Rs 2000 will be imposed on people who violate the Odd-Even Formula.
Odd-even policy will not be in effect on Sunday, it will be in force on other days from 8am to 8pm.
There are few exemptions such as Women driving alone, VIPs, VVIPs etc.

Need of such policy

Levels of tiny particles known as PM 2.5 in the Indian capital often exceed those deemed safe by the United
Nations World Health Organization.
In the case of Delhi, the contribution of vehicles to air pollution is quite high. Certain studies estimate it to be
up to 80% of the total.
Base noise levels in the city have exceeded acceptable standards.
Increasing number of vehicular count adds to air pollution and global warming.
The growing vehicle population gives rise to unrestrained noise pollution and associated health effects and
can cause both short term as well as long term psychological and physiological disorders.
From an economic perspective, congestion on roads results in loss of man-hours as travel time gets longer.
Slow-moving traffic leads to higher fuel expenditure at the household level and larger imports of crude oil at
the macro level, which has implications for valuable foreign exchange.

Benefits

Heightened public awareness regarding the environmental impact of pollution on society.

Mass public participation- Citizens in Delhi has demonstrated an overwhelming level of compliance with this
experiment.
De-congestion of roads has reduced the travel time. It has also helped in reducing noise pollution.

Challenges

As per the Government of Delhi (2015), there are 88, 27,431 vehicles as of March 2015. Of these, 64.36% are
motorcycles and scooters, while 31.61% are cars and jeepstogether they make up 96%.
The share of buses is a meagre 0.22%, while taxies and auto-rickshaws comprise nearly 1% each. So a very
limited source of pollution was targeted under this scheme.
To create a deeper impact, policy should have targeted more vehicles under it.
Vehicle emissions contribute only between 20% to 40% of the PM 2.5 in Delhis air.
To broaden the scope of this policy, government should also try to consider the other sources of pollution
such as power plants, fuel standards, agricultural pollution etc. and try to minimize their impact on
environment.
China The policy of banning odd- and even-numbered vehicles on specific days has prompted households in
Beijing to go for a second car. Same experience was also felt in Mexico city.
Considering a very high per capita income in Delhi, Rs 2,40,849 in 201415, there is a possibility that most
people may go for the purchase of second car if this policy is implemented for longer duration.

Way Forward

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Through several advertisements and awareness campaigns, the government should aim at educating people.
Campaign for use of public transport (Ab Bus Kareinlet us take a bus) and car-pooling are two prominent
examples in this regard.
Strengthen the public transport system so that its capacity will be increased.
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Increasing road tax and parking charges which will discourage people from going for private vehicles.
Use of high standard fuel such as Bharat Stage VI fuel as early as possible.

7.4. POLICY ON PROMOTION OF CITY COMPOST

Why in news?

Union cabinet has given its approval for a Policy on Promotion of City Compost

What is compost?

Compost is organic matter that has been decomposed and recycled as a fertilizer and soil amendment.
At the simplest level, the process of composting simply requires making a heap of wetted organic matter
known as green waste (leaves, food waste) and waiting for the materials to break down into humus after a
period of weeks or months

Salient Features of the Policy:

Market development assistance of Rs. 1500 per tonne of city compost for scaling up production and
consumption of the product. It would lower MRP of city compost for farmers.
Eco-Mark standard for City Compost.
Distribution :
o Co-marketing by Fertilizer companies.
o The companies will also adopt villages for promoting the use of compost.
Information Education and Communication network
o Concerned Ministry/Department will carry out IEC campaigns to educate farmers.
o The Agricultural Extension Machineries including KVKs of ICAR will also make special efforts in this
regard.
o Initially, marketing and promotion of city compost is proposed to be done through the existing fertilizer
companies. In due course, compost manufacturers and other marketing entities recognized by the
concerned State Government may also be included for the purpose with the approval of Department of
Fertilizers. The market development assistance shall be routed through the entity which is marketing it
Monitoring
o A joint mechanism will be set up by Department of Fertilizers, Ministry of Urban Development and
Department of Agriculture to monitor and facilitate availability of adequate quantity of City Compost at
terms mutually agreeable between compost manufacturers and Fertilizer Marketing companies.
o They will also be authorised to resolve any co-ordination related issue that may arise.

Advantages of City Compost:

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Soil health improvement

o It contains useful soil microbes and humus that aerates soil, and improves water retention and
resistance to both drought and water logging, thereby reducing irrigation requirements.
o It can restore India's 21.7 million hectares of saline and alkaline soils.
o To counter the galloping depletion of micro-nutrients in soil since heavy chemical-fertiliser use began.
o Heavy-metal levels will come down when compost is used along with chemical fertilizers, since single
super-phosphate and rock phosphate, for example, contain twice as much lead and 9-15 times more
cadmium than the standards now specified for city composts.
Environmentally better suited.
Protects groundwater pollution
Effective mechanism of solid waste management- Aligned with Swachh Bharat Mission cleaner cities
Employment generation in the urban areas and enhance the livelihood of waste managers.

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7.5. STRANDED CARBON

Why in news?

A London-based energy think tank has warned that fossil fuel producers across the world are wasting up to
US $ 2.2 trillion after 2020 by investing in projects that could hinder worlds fight against climate change.
This is because much of to be discovered fossil fuel would remain unused because of the carbon budget.

What is stranded carbon?

It refers to fossil fuel energy resources that cannot be burnt if the world is to adhere to a given carbon
budget. Therefore some of proven reserves of fossil fuels will never be burnt and will remain stranded.
How much Stranded Carbon?

Within the 2C target; we only have about 1,100 Giga Tonnes (gt) of carbon dioxide (CO2) that can still be
emitted.
Current proven reserves of fossil fuels are about 812 billion tonnes of oil equivalent (oil, gas and coal).
Just burning all these proven reserves (not counting contingent reserves or those yet to be discovered)
would generate about 2,512 gt of CO2 equivalent emissions.
Thus no more than 40 per cent of the existing proven reserves of fossil fuels can ever be burnt.
Probably even less, as some of the carbon budget will be taken by non-fossil fuel applications like
agriculture.

Implications:

The Middle East would need to leave about 40% of its oil and 60% of its gas underground
The majority of the huge coal reserves in China, Russia and the United States would have to remain unused
Undeveloped resources of unconventional gas, such as shale gas, would be off limits in Africa and the Middle
East, and very little could be exploited in India and China
Unconventional oil, such as Canada's tar sands, would be unviable.

7.6. BHARAT INNOVATION FUND

Bharat Fund is a public-private-academia partnership set up by Indian Institute of Management (IIM)

Ahmedabads Centre for Innovation Incubation and Entrepreneurship (CIIE).
The Fund was launched by the Prime Minister in September 2015 during the Startup Connect event in
California.

Salient features:

The Fund will be managed and coordinated by CIIE at the IIM, Ahmedabad.
It will support innovation and innovative startups in areas of healthcare and life-sciences, sustainability, and
digital technologies
The Fund will use important tools such as labs, mentorship, funding, and networking to support
entrepreneurs who take on hard challenges of an ever-broadening Indian market.
The (DBT) will engage with the Bharat Fund for Startup India initiative, to help commercialize technologies
from its labs and facilities, while also mentoring startups in the healthcare, agri-tech, and other biotechrelated areas.
The DBT will also invest Rs. 50 crore over the next 3 years to support startups through this Fund.

Why this fund?

78

Innovation-led economic development in a modern knowledge economy requires equal and consistent
support from the public and private sectors.
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This Fund is an effort by one of Indias leading academic institutes to bring together public and private
resources, such as experts, finances and labs, to provide the fertile ground for innovation that will seed the
Indian multinationals of the next few decades.

7.7. IMD LAUNCHES A SYSTEM TO MONITOR AIR RISKS AND BLACK

CARBON IN ATMOSPHERE

The Indian Meteorological Department (IMD) has

launched a System of Aerosol Monitoring and
Research (SAMAR) which will help the country in
studying concentration of black carbon in
atmosphere due to air pollution and its impact on
climate.
It is a network of 16 Aethalometers, 12 Sky
radiometers and 12 Nephelometers.

What are Aerosols?

They are a subset of air pollution that contains

gases, fumes and dust in harmful proportion.
These particles can be both solid and liquid which also affects environmental visibility.
They are suspended particulates in the atmosphere and have implications for climate and health through
different mechanisms.
Several studies have suggested that aerosols may be mitigating global warming by increasing the planetary
albedo,
Although the sign and magnitude of aerosol effects on climate are still uncertain as outlined in the
Intergovernmental Panel on Climate Change (IPCC) reports.

What is Black Carbon?

Black carbon (BC) aerosol assumes importance due

to its high absorption characteristics, which in turn
depends on its production mechanism.
In addition to exerting its own radiative impact,
black carbon aerosol can substantially contaminate
other aerosol species, thereby altering the radiative
properties of the entire aerosol system and in fact
their ability to act as cloud condensation nuclei.
The sources of BC are fossil fuel through burning of
diesel and solid coal, indoor burning of biomass
fuels for cooking and heating and outdoor burning
of crop residues, savannas and forests.
Black carbon warms the atmosphere due to its
absorption and by reducing albedo when deposited
on snow and ice

7.8. BIODIVERSITY DATABASE FOR URBAN INDIA

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A biodiversity database for urban India will be prepared for better species diversity management.
This will be dovetailed to the smart city initiative.
This project will be implemented by the Council of Scientific and Industrial Research (CSIR).
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It will be helpful in maintenance of sustainable environment and health.

It will also help the public and local bodies in enabling them to make the best choice for local plantation.

7.9. MINISTRY OF SHIPPING LAUNCHES PROJECT GREEN PORT

With an aim to make major ports in India greener and cleaner, government has launched Project Green
Ports. The project has two verticals --- Green Ports Initiative and Swachh Bharat Abhiyan.
The Green Port Initiative comprises 12 time-bound sub-initiatives.
o Some of the plans are preparation and monitoring plan,
o acquiring equipment required for monitoring environmental pollution,
o acquiring dust suppression system, setting up of sewage/waste water treatment plants/ garbage
disposal plant,
o setting up projects for energy generation from renewable energy sources,
o completion of shortfalls of Oil Spill Response (OSR) facilities (Tier-1), prohibition of disposal of almost all
kind of garbage at sea,
o Improving the quality of harbor wastes etc.
Under Swachh Bharat Abhiyaan, the Ministry has identified 20 activities with certain time-line to promote
cleanliness at the port premises.
o cleaning the wharf, repairing of sheds, cleaning and repairing of port roads,
o modernizing and cleanliness of all the toilet complexes in the operational area,
o Beautification and cleaning of parks, boards indicating cleanliness messages,
o Cleaning and repairing of all drainages and storm water systems and tree plantation.
In order to achieve these objectives, regular training will be provided to the staff in order to generate
awareness and inculcate a positive attitude towards keeping the environment clean and green.

7.10. INITIATIVES UNDER NAMAMI GANGE PROGRAMME

1. Ganga Gram Yojana Launched

Government recently launched Ganga Gram Yojana in Hapur District Of U.P.

1600 villages situated along the banks of river Ganga will be developed under this scheme.
First phase of the programme will cover 200 villages.
In these villages open drains falling into river Ganga will be diverted and alternative arrangements for
sewage treatment will be made.
The villages will have toilets in every house hold.
It is proposed to incur and expenditure of Rs. One crore on every village.
These villages will be developed under the Sichewal model. Sichewal is situated in Punjab, where
cooperation of the villagers has been solicited for the water management and waste disposal in a meticulous
way.

2. Approval of Hybrid Annuity Based Public Private Partnership (PPP) Model

In this model, a part of the capital investment (upto 40%) will be paid by government through construction
linked milestones and the balance through an annuity over the contract duration upto 20 years

Expected Benefits

80

This will help taking up more number of projects with the same allocation as made available under Namami
Gange programme with reduced financial liability in the initial years.
Spreading the stakes of private participant over the entire period of concession would ensure continued
operations over long term.
Linking of performance standards with the annuities will ensure desired objective of treated water of
appropriate standard.
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It would help gradual capacity building of the Urban Local Bodies by setting ground for recovery of user
charges on Polluter Pays Principle.
Development of the market for treated water will lead to reduced demand on riverine freshwater and will
result in enhanced flows in river Ganga.
These steps would also kick start the process of responsible use of water in general and go a long way in
mitigating the projected water shortage in the country.

3. Deployment of Ganga Task Force

The first company of Ganga Task force Battalion was deployed at Garhmukteshwar.
Three such companies will be deployed soon at Kanpur, Varanasi and Allahabad.
Jawans of the Ganga Task force will be deployed on the banks of the river Ganga to ensure that industry and
civilians do not pollute the river.

7.11. GREEN SIGNAL TO 'RAPTOR MOU'

The Government has approved signing of Memoranda of

THREATS FACED BY RAPTORS
Understanding (MOU) on the Conservation of Migratory
Habitat loss and degradation, illegal shooting,
Birds of Prey in Africa and Eurasia-also called the Raptor
poisoning, collisions with aerial structures and
MOU-with the Convention on Conservation of Migratory
electrocution by power lines.
Species (CMS).
It aims to promote internationally coordinated actions to conserve and reserve the decline of birds of prey.
They include species such as eagles, kites, vultures, hawks and owls.
Although legally non-binding, it will help India gain knowledge in effectively managing the habitats of these
raptors.
MoU extends its coverage to 76 species of birds of prey. Of these, 46 species, including vultures, falcons,
eagles, owls, hawks, kites, harriers, are found in India.

About Convention on CMS

Under the aegis of the United Nations Environment Programme (UNEP), CMS provides a global platform for
the conservation and sustainable use of migratory animals and their habitats.
CMS brings together the States through which migratory animals pass, the Range States, and lays the legal
foundation for internationally coordinated conservation measures throughout a migratory range.
Appendix I - Migratory species threatened with extinction.
Appendix II -Migratory species that need or would significantly benefit from international co-operation.

7.12. CONSULTATION ON BIODIVERSITY FINANCE INITIATIVE BEGINS

The Environment Ministry started a two-day National Stakeholder Consultation Meeting on Biodiversity
Finance Initiative to conserve Indias biodiversity.
This National Stakeholder meeting has been organized to understand the BIOFIN project and to seek
professional inputs from experts of various fields in strengthening the biodiversity conservation efforts in the
country.
The idea behind implementing BIOFIN is to first assess the gap between the available funding and the
required funding for biodiversity conservation and then to plan for resource mobilization.

What is Biodiversity Finance Initiative (BIOFIN)?

81

Biodiversity Finance Initiative BIOFIN, is a new global partnership seeking to address the biodiversity
finance challenge in a comprehensive manner building a sound business case for increased investment in
the management of ecosystems and biodiversity.
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BIOFIN is managed by the UNDP Ecosystems and Biodiversity Programme, in partnership with the European
Union and the Governments of Germany and Switzerland.
The Global Environment Facility is a further partner financing parallel in-country projects in support of the
revision of National Biodiversity Strategies and Action Plans (NBSAPs).

7.13. SNOWFLAKE CORAL - A SERIOUS THREAT TO BIODIVERSITY

Snowflake coral is posing a major threat to the coral reef colonies in the Gulf of Mannar, Gulf of Kutch and
the Andaman and Nicobar Islands.
It can destabilize the marine ecosystem because it may crowd out other species like corals, sponges, algae,
ascidians that contribute to the rich marine biodiversity of the region.

What is Snowflake Coral?

The snowflake coral, (Carijoa riisei) is a species of soft coral in the family Clavulariidae.
It is native to the tropical western Atlantic Ocean and has spread to other areas as an invasive species.
It was first reported as an invasive species from Hawaii in 1972. Since then, it has spread to Australia,
Thailand, Indonesia and the Philippines.
It is considered invasive because of its capacity to dominate space and crowd out other marine organisms.
It is known to inhabit reefs and underwater structures such as shipwrecks and piers, attaching itself to metal,
concrete and even plastic.

7.14. OCEANS TO HAVE MORE PLASTIC THAN FISH BY 2050

Report Published by the World Economic

FACTS
Forum, says the world's oceans may have
more plastic debris than fish by the year
Use of plastic bags has increased by 20 times in past 50 years
2050.
Most plastic packaging is used only once then discarded
The study found that whopping 32 percent
One-third of all plastic packaging escapes collection systems
of all plastic packaging escapes collection
40 percent of plastics end up in landfills
systems and finds its way into natural
Only five percent of plastics are efficiently recycled
ecosystems, including the oceans.
Plastics production will increase to 1.124 billion tonnes by 2050
This releases toxic chemicals that may be
digested by fish and end up in the human food chain.
This has potential to poison animals, which can then adversely affect human food supplies

Way forward

The most effective way to stop plastic pollution in our oceans is to make sure it never reaches the water in
the first place.
We all need to do our fair share to stop plastic pollution: individuals need to recycle and never litter, but
producers of single use plastic packaging need to do more.
We need producers to design packaging so that it is fully recyclable, and so there is less waste.
We also need producers to help cover the costs of keeping their products out of the ocean.

7.15. ORGANIC FARMING

Citing the successful example of Sikkim, Prime Minister called for expansion of organic farming across the
country as part of efforts to transform the agriculture sector, entailing better remuneration for the farmers.

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Organic Farming

Organic agriculture is a holistic production management system which promotes and enhances agroecosystem health, including biodiversity, biological cycles, and soil biological activity.
Thus Organic farming uses natural fertilizers and pesticides and strictly limits (not eliminates completely) the
use of synthetic and non-natural processes.

Principles of Organic Agriculture

Principle of Health: Organic agriculture should sustain and enhance the health of soil, plant, animal and
human as one and indivisible.
Ecological Principle: Organic agriculture should be based on and work with living ecological systems and
cycles, emulate them and help sustain them.
Principle of Fairness: Organic agriculture should be built upon relationships that ensure fairness with regard
to the common environment and life opportunities.
Principle of Care: Organic agriculture should be managed in a precautionary and responsible manner to
protect the health and well-being of current and future generations and the environment.

Advantages of Organic Farming

Organic farming is definitely healthier and safe than non-organic farming.

Organic farms have higher levels of soil biological activity and biodiversity;
Farmers can reduce their production costs because they do not need to buy expensive chemicals and
fertilizers.
Organic agriculture causes less pesticide contamination in food, people and the environment;
In the long term, organic farms save energy and protect the environment.
Pollution of ground water is stopped.

Disadvantages

Lack of convenience.
Organic food is more expensive.
Food safety concerns.

Scope

About 1-2% of the worlds food is produced with organic methods. The market however is growing very
quickly - by about 20% a year. In Europe, Austria (11%), Italy (9%) and the Czech Republic (7%) are the
countries in which organic food production as it its highest.

7.16. EL NINO AND WARM WINTER

Why in news?

This winter has been lesser cold and temperatures are 4-5 degrees Celsius above the normal for this time.
Western parts of Rajasthan which used to experience extreme coldness, the average temperature is 5 to 8
degrees Celsius above normal.

Reasons

83

Global factors: Persisting El Nio phenomenon

o By the time neutral conditions are expected to be established in the Pacific Ocean later this year, the El
Nio would have persisted for 15 months, spanning two seasons.
o Winters that follow an El Nio event are slightly warmer than usual.

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Scientists say the Pacific warming spreads to the Indian Ocean with a lag of about 2-3 months, leading to
a warming over the subcontinent.
Regional Factors: Usually westerlies used to bring rain system in most of Northern and Eastern India, pulling
down temperatures. But this year, the Westerlies have been kept north of the Indian landmass by two
different wind systems.
o An anticyclonic wind system that is usually located south of the Indian peninsula has been pushed
northward, and is located where the westerlies are usually found at this time of the year. This anticyclonic system is warmer and drier.
o Jet streams which used to locate in higher atmosphere, and generally operate in the mid-latitudes, north
of the Indian landmass. But this year, they are positioned much to the south, aligned to the foot of the
Himalayas and the Gangetic plains.

7.17. SIMULTANEOUS TEMPERATURE

GLACIER ICE SHEETS AT NORTH POLE

RISE

AND

SHRINKAGE

OF

Temperatures at the North Pole rose above freezing point in

2015 HOTTEST YEAR ON RECORD
December, 20 degrees Celsius above the mid-winter norm
Data released by NASA and NOAA (National
and reflecting latest abnormality in a season of extreme
Oceanic Atmospheric Administration) show
weather events.
that in 2015, the global mean surface
This rise in Temperatures at the North Pole is estimated to
temperature was the warmest on record
be due to very violent and extremely powerful depression
and reach significant milestone of 1 Celsius
caused by Storm Frank.
above the pre-industrial era.
This deep depression has pushed hot air as far as the North
In the Northern hemisphere (spring of
Pole, where temperatures are at least 20 degrees above
2015) the three-month global average
normal, at around freezing point, between zero and two
concentration of CO2 crossed the 400 parts
degrees.
per million barrier for the first time.
After tormenting the North Atlantic, the depression is
The year 2015 stands out because of the
expected to head towards Russia's Siberia, where the
unusually strong El Nio.
inhabitants can expect a heat wave of sorts.
El Nio has also been cited as a factor in the genesis of these devastating storms.
However, the sudden rise in winter temperatures in the North Pole could interfere with the usual process of
the growth of winter ice in the Arctic.
Sea ice during the winter maximum is becoming younger and thinner.

7.18. INDIAN CLIMATE MODEL TO AID FUTURE IPCC REPORTS

India will have its own climate change models to project the impact of global warming over the decades and
these will form part of the forthcoming Sixth Intergovernmental Panel on Climate Change Reports that is
expected to be available in 2020.
This will be helpful in getting clear picture of Indian environmental conditions.
These climate change models have been framed considering Indian climatic conditions.
The climate models, being developed by the Earth Sciences Ministry, will be prepared by the Pune-based
Centre for Climate Change Research.

7.19. ASSESSMENT OF CITIES UNDER SWACHH BHARAT MISSION (SBM)

84

To assess the Swachh Bharat Mission, the Ministry of Urban Development has decided to study and rank 75
cities under the mission Swachh Survekshan.
The task of executing the mission has been entrusted with the Quality Council of India.
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It will cover all state capitals and 53 other cities.

There will be three streams of data collection
o Citizen feedback,
o Municipality self-evaluation
o Independent assessment
The results are to be announced on the MyGov website.
It will be helpful in measuring the impact of the mission year-onyear basis.
Based on the findings, rules can be modified and new steps can be
taken to correct the measures and effective and efficient
implementation cab be ensured.

The Himalayan Forest Thrush - A New Species of Bird

Parameters for evaluation

Strategies to stop open defecation
and integrate the city's solid waste
management systems.
Efficacy
of
communication
strategies
on
information,
education and behaviour change.
Effectiveness of systems for
sweeping, door-to-door collections
and transportation of waste.
Efficiency in processing and
disposal of waste.
How good is deployment of public
and community toilets?
Progress made in construction of
household individual toilets.

Scientists have described a new species of bird in northern India

and China, called the Himalayan forest thrush.
The bird has been named Himalayan Forest Thrush (Zoothera
salimalii). The scientific name honors the great Indian ornithologist
Dr Slim Ali.
The species differs in its song from that of the alpine thrush.
The Himalayan Forest Thrush is a variant of the Plain Backed Thrush and the European Alpine Thrush.
The Himalayan forest thrush has a more musical call while that of the Alpine thrush is raspy and grating.

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